S Immo AG — Interim / Quarterly Report 2006

May 4, 2007

Sparkassen Immobilien AG An Investment for Life

Interim Report for the three months ended 31 March 2006

Interim report for the three months ended 31 March 2006

Dear shareholders and investors,

Sparkassen Immobilien AG made an extremely promising start to 2006: the interim report for the first quarter of the new year clearly shows that we have carried on where we left off in 2005, the most successful year in the company's history. All financial indicators are up, typically by around 50%.

We have also significantly expanded our property portfolio and now have our sights set on further dynamic growth. In accordance with our long-term strategy, which is geared towards generating sustainable and reasonable profits, this means maintaining a well-balanced property portfolio and an equity base sufficient to ensure maximum stability. Which means that we are on the right track: Sparkassen Immobilien AG recently commissioned IMAS, a respected market research institute, to survey some 506 securities owners. The results show that – faced with the choice between high yields/earnings or high levels of security – over half of respondents opted for the latter. Second most important was a well-balanced portfolio, and only then were they willing to accept significantly higher risk.

Our investors benefited from our low-risk, high quality investment strategy in the first quarter: over the last year (March 05 – March 06), s IMMO Aktie gained 8.0%, s IMMO Invest 7.5% and 6.6% (second tranche). Market capitalisation at the end of the quarter rose to EUR 819m, up 61% year on year.

A DETAILED LOOK AT THE COMPANY'S PERFORMANCE IN THE FIRST QUARTER OF 2006

Property portfolio increased by 66% — entry into Romanian market

In December 2005 we expanded into the German property market, which we see as highly attractive. We continued our investment in Germany in the first quarter of 2006. We acquired three properties with a total of 35,000 m2 lettable space: two office buildings in Munich and a large retail property in Halle on the Saale, with Metro Group as the long-term tenant. The acquisition of a 3,100 m2 plot of land in the centre of Bucharest marked our entry into the high-yield Romanian property market. In Budapest we acquired another office property with about 8,000 m2 lettable space which takes our total to about 100,000 m2

in the Hungarian capital. At 31 March 2006 total lettable space was 578,100 m2 , and the value of the portfolio rose year-on-year by 66%, to EUR 784m. The average occupancy rate was 92.9%. Currently, we are 55% invested in Austria, 38% in CEE countries (Czech Republic, Hungary, Romania and Slovakia) and 7% in Germany.

Sustainable improvements in earnings: revenues up 58%, profit up 54%

First quarter revenues were up 58% year-on-year, to EUR 16.1m. Rental income for the period was also up 57%, to EUR 12.8m. The increases are attributable to the judicious expansion of our property portfolio and the efficient management of existing portfolios in Austria, Germany and CEE countries. Operating profit (EBIT) of EUR 8.3m was at a record high, up 50% on the first quarter of 2005. Profit before tax for the period (EBT) was up 59%, to EUR 4.7m. Consolidated net profit of EUR 3.7m was up 54% on the same period last year.

We shall make every effort to ensure that these excellent results continue unabated throughout the current year by posting outstanding revenues and earnings. We intend to achieve this by promoting the dynamic growth of our portfolio. To this end, we have planned acquisitions to a value of some EUR 500m in existing investment areas in 2006. This will enable us to realise our objective of expanding our property portfolio significantly beyond the one billion euro mark this year.

Some 20,000 shareholders have already shown their trust in us, and we hope to attract further investors in the future with our low-risk investment strategy geared towards quality and long-term growth. Based on cash/earnings and net asset value (NAV) indicators, s IMMO Aktie is today one of the most attractive property shares listed on the Vienna Stock Exchange. For investors this means more property for less money.

Your Management Board team

Holger Schmidtmayr Ernst Vejdovszky

Consolidated balance sheet as at 31 March 2006

EUR '000	31.03.2006	31.03.2005	Change
ASSETS
A. Non-current assets
I. Intangible assets	49	26
II. Property, plant and equipment	748,915	471,592	+59%
III. Financials assets	6,084	6,006
IV. Non-current receivables	1,972	1,205
	757,020	478,829	+58%
B. Current assets
I. Receivables and other assets	41,030	23,623
II. Securities and investments	28,466	11,880
III. Cash and cash equivalents	134,331	5,134
	203,827	40,637
C. Accrued and deferred assets	378	425
	961,225	519,891	+85%
EQUITY AND LIABILITIES
A. Equity	367,018	226,886	+62%
B. Minority interests	23,948	0
C. Non-current liabilities
1. Participation certificates	275,506	166,214	+66%
2. Non-current liabilities to banks	209,084	58,930	+255%
3. Provisions	10,855	6,349
4. Other liabilties	22,850	21,330
	518,295	252,823
D. Current liabilities	47,143	37,831
E. Accrued and deferred liabilities	4,821	2,350
	961,225	519,891	+85%

Consolidated income statement for the three months ended 31 March 2006

	01.01.–31.03.2006	01.01.–31.03.2005	Change
EUR '000
Revenues	16,116	10,172	+58%
thereof rental income	12,842	8,176	+57%
Other operating income	1,069	253
Income from the sale of property	1,132	2,108
Total operating income	18,317	12,533	+46%
Depreciation and amortisation	-4,982	-3,018
Other operating expenses	-4,998	-3,951
Operating profit / EBIT	8,338	5,564	+50%
Financial expenses	-3,657	-2,629
Profit for the period before taxes (EBT)	4,680	2,935	+59%
Taxes on income	-912	-524
Net profit for the period before minorities	3,767	2,411	+56%
Minority interests	-64	0
Consolidated net profit	3,703	2,411	+54%

Consolidated segment reporting as at 31 March 2006

EUR '000	Austria	%	Hungary	%	Czech Republic	%
Revenues	9,887	61	2,574	16	1,713	11
Operating profit (EBIT)	5,571	66	915	11	1,070	13
	Germany	%	Slovakia	%	Romania	%
EUR '000
Revenues	1,122	7	820	5	0
Operating profit (EBIT)	545	6.5	294	3.5	-57

Summarised consolidated cash flow statement for the three months ended 31 March 2006

EUR '000	01.01.–31.03.2006	01.01.–31.03.2005	Change
Profit before taxes	4,680	2,935
Depreciation and amortisation	4,982	3,018
Income from the sale of property	-1,132	-2,108
Taxes paid	-88	-35
Net interest payable	3,657	2,629
Consolidated cash flow	12,099	6,439	+88%

Sparkassen Immobilien AG products

Sparkassen Immobilien AG has two attractive property investments to offer:

– s IMMO Aktie – the accumulating share

– s IMMO INVEST – the distributing participation certificicate.

Sparkassen Immobilen AG keeps the two products legally distinct: the assets and associated income of the two groups of investors are accounted for separately.

s IMMO-Aktie

s IMMO Aktie: market price since initial listing EUR '000

Stock exchange information

ISIN code	AT000 065225 0
Income	accumulation
Stock exchange listing	official market
Market segment	auction Market
Reuters	SIAG.VI

Performance data as at 31 March 2006

Initinal listing 28 June 2002
Market price as at 31 March 2006	8.88
One-year performance	8.0 %
Three-year performance (p.a.)	7.2 %
Since initial listing ( p.a.)	6.1 %

s IMMO Aktie – key figures

	31.03.2006	31.03.2005
EUR '000
Market price 31 March 2006	8.88	8.22
Number of shares in issue	50,118,718	33,412,279
Market capitalisation (EUR m)	445.05	274.6
Cash flow per share (EUR)	0.11	0.10
Price/cashflow ratio	20	20
s IMMO Aktie – assets, liabilities and equity
Book value (EUR '000)	31.03.2006	31.03.2005	Change
Properties/non-current assets	397,948	289,457	+37%
Receivables	53,186	26,288
Securities	22,304	7,128
Cash and cash equivalents	87,290	2,885
Accrued and deferred assets	219	318
Total assets	560,946	326,076	+72%
Liabilities to banks	106,175	29,985
Provisions	5,476	2,684
Other liabilities	20,447	20,194
Current liabilities	46,697	46,326
Total liabilities	178,795	99,189	+80%
Equity	382,151	226,886	+68%
s IMMO Aktie - earnings
EUR '000	31.03.2006	31.03.2005	Change
Revenues	8,262	5,928	+39%
thereof rental income	6,497	4,735	+37%
Operating profit (EBIT)	4,664	3,105	+50%
Profit before taxes (EBT)	4,442	2,771	+60%
Profit after taxes (EAT)	3,735	2,411	+55%
Consolidated net profit	3,703	2,411	+54%

s IMMO INVEST

Performance incl. annual distributions. In recent years the s IMMO INVEST participation certificate has significantly outperformed the benchmark index, the IATX.

s IMMO INVEST – key figures

Stock exchange information

AT000 079573 7/AT000 063069 0
Annual distribution
Participation certificates
(section 174, AktG
Official market
Other Listings
SIMIg.VI

Performance data

Initital listing 29 December 1996
Market price 31 March 2006	96.85	95.90
One-year performance	7.5 %	6.6 %
Three-year performance (p.a.)	8.3 %
Since initial listing (p.a.)	8.6 %	9.2 %

	31.03.2006	31.03.2005
EUR '000
Market price 31 March 2006	96.85	94.40
Number of certificates in issue	3,883,398	2,468,398
Market capitalisation (EUR m)	379.6	183.6
Cash flow per certificate (weighted)	1.2	1.1
Price/cash flow ratio	19	20
s IMMO INVEST (participating capital) – assets
	31.03.2006	31.03.2005	Change
Book value (EUR '000)
Properties/non-current assets	356,428	183,572	+94%
Group interests Receivables	5,802 52,602	5,802 49,136
Securities	6,163	4,752
Cash and cash equivalents	47,041	2,249
Accrued and deferred assets	158	107
Total assets	468,194	245,618	+91%
Liabilities to banks	106,034	28,946
Other liabilities	85,993	45,473
Total liabilities	192,027	79,405	+142%
Participating capital	276,167	166,214	+66%
s IMMO INVEST (participating capital) – earnings)
EUR '000	31.03.2006	31.03.2005	Change
Revenues	7,854	4,244	+85%
thereof rental income	6,345	3,441	+84%
Operating profit (EBIT)	3,673	2,459	+49%
Profit before taxes (EBT)	3,184	2,275	+40%
Profit after taxes (EAT)	2,978	2,111	+41%

Sparkassen Immobilien AG's Markets

Current Investments Prospective Investments

Sparkassen Immobilien AG Windmühlgasse 22-24, A-1060 Vienna Tel +43 (0)50100 - 27550 Fax +43 (0)50100 - 27559 Investor Relations: Andreas Feuerstein, andreas.feuerstein@immorent.at Franz Zaccaria, franz.zaccaria@immorent.at