S Immo AG — Interim / Quarterly Report 2005

May 3, 2007

Sparkassen Immobilien AG Interim report for the nine months ended 30 September 2005

Interim report for the nine months ended 30 September 2005

Dear shareholders and investors,

As in past years, Sparkassen Immobilien AG's performance in the third quarter of 2005 was again excellent, and this time even produced record results. This success is attributable to our strategy of investing for durable and sustainable growth, so that we achieve long-term appreciation for our shareholders by concentrating on markets with the greatest potential.

Historically, the capital markets have rewarded our single-minded pursuit of investment quality – purchasing only highend locations in European cities with particularly high property values and top-notch tenants – with consistently stable long-term results. Between September 2004 and September 2005, s IMMO Aktie grew by 10.5%, and the s IMMO INVEST participation certificate rose by 13.8%. And on the basis of cash, earnings and NAV indicators – according to a recent sector report – s IMMO Aktie is particularly attractively priced compared with all other Austrian listed property company shares.

In the interest of our shareholders our prime consideration is the security and sustainability of the returns on our investments. These criteria will continue to be central in our plans for future expansion. For the remainder of this year, we plan to extend our investment focus to the German market, which currently offers attractively low prices and high yields. We are also reviewing additional properties in the Central European markets of Bulgaria, Romania, Serbia-Montenegro and Slovenia.

A detailed look at the Company's performance in the first three quarters of 2005:

Property assets increased to EUR 543.2 million

With carefully selected acquisitions in Austria and Hungary, we have added several attractive, high-yielding properties to our portfolio recently: the latest addition is the main building of the Social Insurance Fund for Farmers, in Vienna, which has added a prime 20,000 m2 of lettable space to our portfolio. Overall, property assets increased by 33% to EUR 543.2m in the period, and lettable space grew to 490,155 m2 .

Property assets for s IMMO Aktie rose by 13.1% to EUR 293.03m and average occupancy rates were 91%. s IMMO INVEST property assets increased by some 70% to EUR 254m, as a result of acquisitions made with the proceeds of the capital increase in June. Here the occupancy rate was 95%.

Revenues and earnings at record levels

We set new records for income and earnings in the first three quarters of 2005. Revenue rose by 21% from EUR 26m to EUR 31.4m, and rental income amounted to EUR 25.2m (an increase of 15.4% compared with the same period last year). The steady increase in revenues was due to the continuing expansion of our property portfolio.

New highs were achieved for all earnings measures, with significant increases as compared with the same period in 2004. Operating profit (EBIT) rose by 48% to EUR 15.3m, and profit before tax (EBT) went up by almost 50% to EUR 8.1m. Consolidated net profit was EUR 5.7m for the nine-month period, compared with EUR 4.5m for the same period last year. This exceedingly positive trend is attributable to the steady flow of earnings from the high-yielding CEE portfolio, which has come to make up around 70% of EBIT, combined with the core contribution of the Austrian portfolio.

The breadth of our regional diversification and our optimal sectoral spread together with the products' established performance track records and attractive pricing make s IMMO Aktie and s IMMO INVEST highly profitable investments with an indispensable role to play in every property portfolio.

Your Management Board team

Ernst Vejdovszky Holger Schmidtmayr

Consolidated balance sheet as at 30 September 2005

ASSETS
	30.09.2005	30.09.2004	Change
	EUR'000	EUR'000	%
Non-current assets
Intangible assets	36	26
Property, plant and equipment	544,739	408,951	+ 33 %
Financial assets	6,006	10,792
Non-current receivables	671	310
	551,452	420,079	+ 31 %
Current assets
Receivables and other assets	35,506	18,305
Securities and investments	45,279	0
Cash and cash equivalents	8,934	5,002
	89,719	23,305
Accrued and deferred assets	417	1,437
	641,588	444,823	+ 44 %
EQUITY AND LIABILITIES
	30.09.2005	30.09.2004	Change %
Equity	229,323	202,386	+ 13 %
Minority interests	1,588	0
Non-current liabilities
1. Participation certificates	281,579	133,532	+ 110 %
2. Non-current liabilities to banks	69,726	42,234	+ 65 %
3. Provisions	9.116	7,214
4. Other liabilities	21,078	21,072
	381,499	204,476
Current liabilities	27,265	35,999
Accrued and deferred liabilities	1,912	1,961
	641,588	444,823	+ 44 %

Consolidated income statement for the nine months ended 30 September 2005

	01.01. - 30.09.2004	Change
		%
		+ 21 %
		+ 15 %
		+ 40 %
		+ 48 %
		+ 49 %
5,722	4,552	+ 25 %
	01.01. - 30.09.2005 EUR'000 31,437 25,175 4,233 2,108 37,778 -9,968 -12,559 15,251 -7,129 8,122 -1,805 6,317 -595	EUR'000 26,071 21,812 782 44 26,897 -7,245 -9,354 10,298 -4,847 5,451 -899 4,552 0

Consolidated segment reporting as at 30 September 2005 (EUR '000)
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	Austria	%	Hungary	%	Czech Republic	%	Slovakia	%	Total
Revenues	18,324	58	7,616	24	4,322	14	1,175	4	31,437
Operating profit (EBIT)	4,699	31	5,403	35	4,541	30	607	4	15,251

Summarised consolidated cash flow statement for the nine months ended 30 September 2005 (EUR '000)

	01.01. - 30.09.2005	01.01. - 30.09.2004	Change %
Profit before taxes	8,122	5,451
Depreciation and amortisation	9,968	7,245
Income from the sale of property	-2,108	-44
Taxes paid	-79	-249
Net interest payable	7,129	4,847
Consolidated cash flow	23,032	17,250	+ 33 %

Selected property key data Sparkassen Immobilien AG as at 30 September 2005

s Immobilien AG products

s Immobilien AG has two attractive property investments to offer:

• s IMMO Aktie the accumulation share
• s IMMO INVEST the distributing participation certificate

s Immobilien AG takes care to ensure that the two products are kept legally distinct: the assets and associated income of the two groups of investors are accounted for separately.

s IMMO Aktie

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

Performance date as at 30 September 2005 Initial listing 28 June 2002: EUR 7.10 Market price 30 September: EUR 8.73 One-year performance: 10.5 % Three-year performance (p.a.): 7.6 % Since initial listing (p.a.): 6.71 %

s IMMO Aktie – key figures

	30.09.2005	30.09.2004
Market price 30 September (EUR)	8.73	7.90
Number of shares in issue	33,412,279	30,375,000
Market capitalisation (EUR m)	291.6	239.9
Cash flow per share (EUR, full-year forecast)	0.45	0.42
Price / cash flow ratio	19	19

s IMMO Aktie – assets, liabilities and equity

Book value (EUR '000)	30.09.2005	30.09.2004	Change %
Properties / non-current assets	293,861	262,804	+ 12 %
Receivables	36,105	13,617
Securities	6,086	0
Cash and cash equivalents	4,419	2,906
Accrued and deferred assets	258	948
Total assets	340,730	280,275	+ 21 %
Liabilities to banks	35,932	26,207
Other liabilities and accruals	52,752	32,559
Grants / tenants' financing	18,770	19,126
Total liabilities	107,454	77,892	+ 62 %
Equity (including minorities)	233,276	202,386	+ 15 %

s IMMO Aktie – earnings

EUR '000	30.09.2005	30.09.2004	Change %
Revenues	18,189	15,666	+ 16 %
thereof rental income	14,527	12,904	+ 13 %
Operating profit (EBIT)	9,051	6,225	+ 45 %
Profit before taxes (EBT)	7,434	5,282	+ 41 %
Profit after taxes (EAT)	6,080	4,552	+ 33 %
Consolidated net profit	5,722	4,552	+ 26 %

s IMMO INVEST

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

s IMMO INVEST – key figures

	30.09.2005	30.09.2004
Market price 30 September 2005	97.75	90.0
Number of certificates in issue	3,883,398	2,040,000
Market capitalisation (EUR m)	379.6	183.6
Cash flow per certificate (EUR, full-year forecast)	4.2	5.05
Price / cash flow ratio	23	18

s IMMO INVEST (participating capital) – assets

Book value (EUR '000)	30.09.2005	30.09.2004	Change %
Properties / non-current assets	260,748	157,276	+ 66 %
Receivables	58,547	22,662
Securities	39,193	0
Cash and cash equivalents	4,514	2,095
Accrued and deferred assets	159	489
Total assets	363,162	182,522	+ 99 %
Liabilities to banks	33,793	16,027
Other liabilities	47,790	32,963
Total liabilities	81,583	48,990	+ 67 %
Participating capital	281,579	133,532	+ 111 %

s IMMO INVEST (participating capital) – earnings

EUR '000	30.09.2005	30.09.2004	Change %
Revenues	13,249	10,404	+ 27 %
thereof rental income	10,647	8,908	+ 19 %
Operating profit (EBIT)	6,201	4,075	+ 52 %
Profit before taxes (EBT)	5,987	4,188	+ 43 %
Profit after taxes (EAT)	5,536	4,018	+ 38 %

Sparkassen Immobilien Aktiengesellschaft A-1060 Vienna, Windmühlgasse 22-24 Tel.: +43 (0) 5 0100 - 27550, Fax: +43 (0) 5 0100 – 27559 Investor Relations: Andreas Feuerstein, Franz Zaccaria E-Mail: office.s-immobilien@immorent.at; http://www.s-immobilienag.at