S Immo AG — Earnings Release 2006

May 8, 2007

Stock Exchange Announcement

Vienna, 17 April 2007

Sparkassen Immobilien AG achieves another recordbreaking business year in 2006

• Sales revenues up 75%
• EBIT advances 119%; profit after tax up 85%
• Property portfolio over EUR one billion
• Development business expands strongly in CEE
• Pipeline of EUR 2.3bn for further growth

Stock-listed Sparkassen Immobilien AG, broke another record in the last business year again. All sales revenues and earnings ratios climbed to exceptional levels. "In the past two years, we have grown as fast as in the ten years before," explained Ernst Vejdovzsky, member of the management board of Sparkassen Immobilien AG in his comment on the surge in growth. "We have invested record amounts into our property portfolio and our profit has risen far above budget. We do not intend to leave the path of solid growth in the future, but will take advantage of opportunities more proactively and in this manner secure an attractive development of our company," said Holger Schmidtmayr, member of the management board.

All of the ratios given below are based on the cost method (cost of acquisition less depreciation), unless otherwise indicated:

The steady expansion of the property portfolio boosted revenues by 75% to EUR 73.6mn up from EUR 42.2mn in the business year 2005. At the same time, rental incomes were up to EUR 60.4mn – this is an increase of 77% y/y. Almost half of the revenues (52%) were earned in 2006 in Austria, and due to the investment focus in Germany, sales revenues from this market ranked second with 17%, and the CEE share in rental revenues was some 30% (2005: 42%). Operating income, which includes the earnings of the Marriott Hotel Budapest with a value of EUR 3.6mn, rose to EUR 86.4mn (+ 67%), and according to fair value, it was even EUR 108.2mn. Gains from divestments were minor at EUR 1.5mn. The operating profit more than doubled (+119%) and hit a new all-time high of EUR 35.3mn after EUR 16.1mn in the business year 2005. The principal driver of this increase was, above all, the higher rental earnings. According to fair value, EBIT was EUR 75.8mn including EUR 29.4mn from revaluations of properties by international appraisers.

Earnings before tax (EBT) rose by 90% which is almost as much and hit EUR 19.2mn following EUR 10.1mn in the like period of the previous year. Net profit was also higher than projected: + 85% to EUR 15.7mn.

"We have not only achieved steep growth as regards volumes, but the figures reported confirm our earnings power and the quality of the new investments," said Holger Schmidtmayr, very pleased.

Stock Exchange Announcement

Vienna, 17 April 2007

Property portfolio climbs for first time over EUR 1bn – Share in Germany widened significantly

Thanks to the new record level of investments in the past business year, the volume of property portfolio rose for the first time over the EUR 1bn mark and climbed to EUR 1.2bn, which corresponds to an increase of 52%. The highest share of completed properties – some EUR 200mn – flowed into Sparkassen's principal investment region of Germany, especially in the residential market of Berlin, which has a great potential.

Sparkassen Immobilien AG exploited the opportunities of higher prices in the CEE countries for completed projects and invested considerably in the expansion of its project development business: in 2006, some EUR 123mn were invested in development projects, while in 2005, the amount was less than EUR 10mn. "We develop projects where there are not enough completed properties or the prices are not attractive enough. In this manner, we have been able to earn higher and more sustainable returns. We prefer partners with long years of experience and keep a majority stake," Ernst Vejdovszky explained the investment strategy.

In 2006, total usable space grew to almost 1million m² (976,000 m² ), which corresponds to an increase of 56%. As of 31 Dec. 2006, there were precisely 100 properties in the portfolio of Sparkassen Immobilien AG. The share of properties held abroad (in m² /incl. development projects) was substantially enlarged: the share in Germany rose to 21%, and the share in CEE was 44%, while the share in Austria declined to 35%. "This geographical diversification has enabled us to profit from the "better of two worlds": First, from the stable Austria and Germany portfolio, and second, from the growth markets of CEE," stressed Ernst Vejdovszky. "We invest or develop in these markets due to the enormous demand, especially for office and retail real estate; residential properties are bought exclusively in Austria and Germany." Thanks to the excellent locations and an efficient property management, the occupancy rate was again excellent at 93% and in CEE even better at 96%. The rental yield was on average 6.6%, which considering the rising prices, was an excellent ratio – also in the peer comparison.

Attractive stock performance

The s IMMO stock gained ground, especially around the end of the year, posting an advance of 12.8% y/y. The inclusion in the global FTSE EPRA/NAREIT Index and the announcement of the successive revaluation of the property portfolio and the simultaneous switch to IFRS Fair Value accounting boosted the stock additionally. The capital increase in June of last year (18,000,000 shares with net issuing proceeds of EUR 154mn) and the corresponding increase in value on the stock market pushed the Company's total market capitalization to just above EUR 1bn (EUR 1.05bn) as of 31 Dec. 2006. Earnings per share (EPS) rose on a fair value basis to EUR 0.62 after EUR 0.44 last year. The net asset value of the s IMMO stock (NAV) rose by almost 10% to EUR 8.9.

Outlook: EUR 2.3 bn in the pipeline for further growth, capital increase planned

"We would like to continue the growth dynamic sustained up to now," explained Ernst Vejdovzsky "and in the light of the current pipeline of EUR 2.3bn, our target of owning a property portfolio of EUR 4bn by 2010 is realistic." More than 60% of the projects in the pipeline are contractually defined, and some EUR 1bn will be invested in the coming 3 to 4 years in developments. To finance thus additional growth, Sparkassen Immobilien AG is planning a capital increase for this year. "Like in the past, we will show our investors specifically what we want to buy with the proceeds of the issue," said Holger Schmidtmayr.

Stock Exchange Announcement

Vienna, 17 April 2007

In 2007, investments of EUR 500 to 800mn are planned. Apart from the existing investment locations in Germany, Romania and Bulgaria, Sparkassen Immobilien AG wants to enter the market in the Ukraine – and a subsidiary with the corresponding real estate professionals is currently being founded there.

Key figures

Consolidated income statement for the period 1 Jan. 2006 to 31 Dec. 2006 in EUR million / Cost Method

	1 Jan. – 31 Dec. 2006	1 Jan. – 31 Dec. 2005	Change in %
Revenues	73.6	42.2	+ 75
Thereof rental income	60.4	34.2	+ 77
Other operating income	11.3	7.6
Income from the sale of property	1.5	2.0
Operating income	86.4	51.8	+ 67
Depreciation and amortization	-21.1	- 16.3
Other operating expenses	-30.0	- 19.4
Operating profit / EBIT	35.3	16.1	+119
Financial profit/loss	-16.1	-6.0
Profit before tax / EBT	19.2	10.1	+ 90
Taxes on income	-3.5	-1.6
Profit after tax	15.7	8.5	+ 85
Thereof share for shareholders of parent
company	15.0	6.8	+121
Thereof share for external shareholders	0.6	1.7

Key figures of properties as of 31 Dec. 2006

Number of properties	100
Total lettable space in m2	976,000
- Austria	343,000
- Germany	204,000
- CEE	430,000
Property portfolio in EUR mn (market value)	1,185
Average rental yield	6.6 %

For inquiries, please contact: Sparkassen Immobilien AG, Media and Public Relations 1060 Vienna, Mariahilferstraße 41-43, Telefax: 0043 (0) 50100 extension Elke Koch, Tel. 0043 (0) 50100 DW 27402, e-mail: elkepetra.koch@immorent.at This text is also available on our website at http://www.sparkassenimmobilienag.at /Service&Presse