S Immo AG — Interim / Quarterly Report 2006

May 8, 2007

Stock Exchange Announcement

Vienna 6 November 2006

Sparkassen Immobilien AG: outstanding third quarter

• Revenues increased by 61% to EUR 51 million
• EBIT rose by 35% to EUR 21 million
• Consolidated net profit rose by 56% to EUR 9 million
• Property portfolio expanded to EUR 914 million

Stock exchange listed Sparkassen Immobilien AG is reporting new records for all its major indicators for the first three quarters of the year, and is expecting financial 2006 to be another record one. Compared to the same period last year, revenues have increased by 61% to EUR 51m, rental income rose by 65% to EUR 42m and operating profit (EBIT) climbed by more than 35%.

New records set for revenues and earnings

As in the past, Sparkassen Immobilien AG has succeeded in establishing new records for all major revenue and earnings indicators. Revenues rose to EUR 51m, an increase of 61% on the comparable period last year. At the same time rental income grew by 65%, to EUR 42m. This satisfactory development is attributable to systematic expansion of the property portfolio, together with rising levels of rents in Germany and in Central and Eastern Europe. Period-on-period operating profit (EBIT) increased by 35% to EUR 21m, so that after only three quarters of 2006 the results for the whole of financial 2005 had already been surpassed. The principle factor has been the higher rental income. Profit before taxes (EBT) even climbed by 48% to EUR 12m, and the improvement in stock exchange prices meant that total market capitalisation rose to EUR 988m, an increase of 23% over the first three quarters.

Property portfolio reaches EUR 914 million

In the three quarters just ended Sparkassen Immobilien AG has invested heavily, so as to drive dynamic growth forward even more rapidly: more than EUR 211m has been invested into new properties and projects during the period, adding total lettable space of 135,800 m² . The investment emphasis was principally on Germany and Romania. The latest new additions in the third quarter were the Sun Plaza development project, the biggest shopping centre in Romania, and a plot of land in Sofia, Bulgaria. At the end of the period, on 30 September 2006, the market value of the property portfolio had reached the EUR 914m, an increase of 53%. The total lettable space for all properties amounted to 888,000 m² , an increase of 81% over the same date last year. The average occupancy rate for the Group was 93%, a level achieved by few other property companies. Both existing properties and the new additions are being very successfully managed: net rental yields in Austria are 6.4%, in Germany 7.1% and an average of 8.2% in the CEE countries, results which are higher than the market average.

Sparkassen Immobilien AG leading Austrian portfolio manager

Its long-term approach to property management means that Sparkassen Immobilien AG achieves higher yields than the market average. This is confirmed by the recent Austrian property index prepared by Investment Property Databank Ltd (IPD), the leading

Stock Exchange Announcement

Vienna 6 November 2006

international supplier of property market information. The index shows that Sparkassen Immobilien AG in 2005 achieved a return of 8.4%, once again clearly outperforming the index's 5.9%, and this time making it the indisputable front-runner! The total return of 8.4% consists of all property revenues including gains on disposals and project development, i.e., rental income plus capital growth. The survey covers 13 businesses – a total of 810 properties with an overall value of EUR 6.5 bn.

Publication of results of revaluation of CEE portfolio by CB Richard Ellis on 15 November

Sparkassen Immobilien AG will publish a stock exchange announcement with the results of the revaluation of the CEE portfolio by CB Richard Ellis on 15 November 2006.

Prospects for 2006

On the basis of these published results, Sparkassen Immobilien AG is expecting 2006 to be another record year, significantly better than 2005. As the result of the ambitious growth strategy, Management is expecting rates of growth rates for revenues and earnings for the whole year to very similar to those achieved in the first nine months. Several properties in Vienna and in Germany will be purchased before the year end, and contracts for other additions in Germany and Sofia will be finalised in the New Year.

Stock Exchange Announcement

Vienna 6 November 2006

Key figures

Consolidated income statement for the nine months ended 30 September 2006 (EUR '000)

	01.01. – 30.09.2006 01.01. – 30.09.2005		Change %
Revenues	50,746	31,437	+ 61 %
thereof rental income	41,586	25,175	+ 65 %
Other operating income	4,195	4,233
Income from the sale of property	1,222	2,108
Operating income	56,163	37,778	+ 49 %
Depreciation and amortisation	-15,971	-9,968
Other operating expenses	-19,588	-12,559
Operating profit (EBIT)	20,604	15,251	+ 35 %
Financial expenses	-8,605	-7,129
Profit for the period before tax (EBT)	11,999	8.122	+ 48 %
Taxes on income	-2,455	-1,805
Net profit for the period before minorities	9,544	6,317	+ 51 %
Minority interests	-619	-595
Consolidated net profit	8,925	5,722	+ 56 %

Property information as at 30 September 2006

Number of properties	73
Total lettable space (m2 )	888,000
– Austria	329,000
– CEE	414,000
– Germany	145,000
Property portfolio (EUR m)	914
Average rental yield	7.1%