S Immo AG — Earnings Release 2005

May 8, 2007

Stock Exchange Announcement

Vienna, 19 April 2006

Sparkassen Immobilien AG 2005 results: best financial year for 20 years

• Revenues up 20% to EUR 42.2m
• Profit before taxes (EBT) increased by 52% to EUR 10.1m, consolidated profit up by 69%
• Property portfolio expanded by 61% to EUR 758.8m
• Lettable space increased by 29%
• Market capitalisation up by 70%

For Sparkassen Immobilien AG, Erste Bank Group's listed real estate company, 2005 was the best financial year in its 20-year history.

Revenue growth of almost 20% — profits before tax jump by more than 50%

Sparkassen Immobilien AG increased its revenues by 20% in 2005, from EUR 35.3m last year to EUR 42.2m. Operating income climbed by 38.2% to EUR 51.8m. Some 50% of the Group's operating income came from its Central Europe investments. The rise in revenues and operating profit is principally attributable to the Group's successful new acquisitions, combined with the existing portfolio's high occupancy rate and the additional lettings in Austria and internationally.

Operating profit (EBIT) grew by 25% to EUR 16.1m, while profit before tax (EBT) climbed by 52%, from EUR 6.6m last year to EUR 10.1m. Consolidated profit for the year climbed by 69% to EUR 8.5m, after EUR 5.0m in 2004.

Property portfolio increased by 61%, new investment more than doubled

In financial 2005 Sparkassen Immobilien AG increased its property portfolio by 61%, from EUR 472.7m to EUR 758.8m. New investments amounted to EUR 288m, twice last year's total. Eight properties were acquired: the most important acquisitions were Vienna's renowned department stores, Steffl and Herzmansky, the Budapest Marriott Hotel in Hungary, and the Group's first venture into the German market, two office properties in the centre of Hamburg.

Total lettable space grew by 29% in 2005, to 548,194 m² . More than half the lettable space (57%) is in Austria, with 40% in Central Europe and 3% in Germany. As at 31 December 2005, Sparkassen Immobilien AG's portfolio consisted of 54% office space, 17% retail space, 12% apartments, 9% hotel space and 9% other space (e.g., garages).

Success in the capital markets: enduring appreciation, market capitalisation up by 70%

s IMMO Aktie was never a speculative investment, and never will be. The share ended the year at EUR 8.70, bringing its investors a solid and respectable 7.1% in capital appreciation on a one-year basis. The s IMMO Invest participation certificate gained 10.8% on the same basis. After a total of four new issues for both investment products together, combined with rises in stock market prices, Sparkassen Immobilien AG's market capitalisation climbed by 70% to EUR 803.6m. For 2005, s IMMO Aktie's earnings per share were EUR 0.44 (2004: EUR 0.43), its net asset value (NAV) increased by 5.7% to EUR 8.10, and with a price / cash earnings ratio of 19.0 it was one of the most attractively priced property shares of all listed real estate investment companies in Austria. s IMMO Invest posted earnings per participation certificate of EUR 4.90 in 2005, following EUR 4.10 in the previous year, and distributed EUR 4.36 per certificate, as in the past five years. The NAV rose by 4.4%.

During 2005 several capital increases for s Immo Aktie and S IMMO Invest raised an additional EUR 290m for further growth of the portfolio, at the same time significantly broadening the institutional investor base.

Outlook for 2006: total investments of EUR 500m planned, with the focus on Germany

In 2006, Sparkassen Immobilien AG will continue to drive its sustainable growth forward. The property portfolio is set to climb well beyond the EUR 1 billion mark, with market capitalisation planned to reach the same levels. This growth is based on projected investments of at least EUR 500m, predominantly in hotel, residential and retail property in Germany, but also, for example, in hotel, office and retail properties in Romania and Ukraine. At least one capital issue is planned for s IMMO Aktie in 2005. The figures for the first quarter also look extremely promising and will be considerably higher that the comparable results in the same period last year.

Key figures

Consolidated income statement for the year ended 31 December 2005 (EUR m)

	01.01. –	01.01. –	Change %
	31.12.2005	31.12.2004
Revenues	42.2	35.3	+ 19
thereof rental income	34.2	29.4
Other operating income	7.6	2.1
Income from the sale of property	2.0	0.44
Operating income	51.8	37.5	+ 38
Depreciation and amortisation	- 16.3	- 11.0
Other operating expenses	- 19.4	- 13.5
Operating profit (EBIT)	16.1	12.9	+ 25
Finance profit / loss	-6.0	-6.3
Profit before tax (EBT)	10.1	6.6	+ 52
Taxes on income	-1.6	-1.6
Profit after tax	8.5	5.0	+ 69

Property information as at 31 December 2005

Number of properties	63
Total lettable space (m2 )	548,194
– Austria	319,886
– CEE	211,558
– Germany	16,750
Property portfolio (EUR m)	758.8
Average rental yield	7.0%

Contact: Sparkassen Immobilien AG, Press and Public Relations Mariahilferstrasse 41-43, A-1060 Vienna, fax: +43 050 100 Elke Koch, tel: +43 050 100 27402, e-mail: ElkePetra.Koch@immorent.at This press release can be downloaded from our website at http://www.sparkassenimmobilienag.at