S Immo AG — Interim / Quarterly Report 2005

May 2, 2007

Sparkassen Immobilien AG Report on the first quarter of 2005

Dear Ladies and Gentlemen, Shareholders and Investors,

In the first quarter of 2005, we made major progress in continuing the success enjoyed by Sparkassen Immobilien AG to date.

We carried out a capital increase for s IMMO INVEST during the reporting period as a result of uninterrupted high demand for real estate securities. The capital increase made up nearly 10% of participation certificates outstanding, just as it did last fall. Domestic institutional investors showed particular interest in the new participation certificates. We were therefore able to place the entire volume within a very short period of time.

This fresh capital was used to purchase extremely lucrative properties which perfectly match our company's strategy.

We completed the inclusion of ARCADE Meidling into the accounting group of s IMMO INVEST. ARCADE Meidling is one of our most attractive domestic properties with its modern concept, convenient, easy-to-reach location and good tenant structure.

We also purchased our fifth property in Hungary – the BUDA Center in Budapest, giving us first-class income-yielding properties on both sides of the Danube.

Your Management Board Team

Mag. Ernst Vejdovszky eh. MMag. Holger Schmidtmayr eh.

Consolidated balance sheet as of March 31, 2005 (in EUR '000s) ASSETS

	Mar. 31, 2005	Mar. 31, 2004	Change in %
A. Non-current assets
I. Intangible assets	26	27
II. Property, plant and equipment	471,592	389,712	+21%
III. Financial assets	6,006	5,098
IV. Non-current assets	1,205	518
	478,829	395,433	+21%
B. Current assets
I. Receivables	23,623	15,663
II. Investments	11,880	2,000
III. Cash and cash equivalents	5,134	3,643
	40,637	21,306
C. Prepaid expenses	425	1,886
	519,891	418,624
EQUITY AND LIABILITIES	Mar. 31, 2005	Mar. 31, 2004
A. Equity	226,886	197,760	+ 15%
B. Minority interest	0	0
C. Non-current liabilities
1. Debenture-like participation rights	166,214	135,441	+22%
2. Non-current liabilities to banks	58,930	29,807
3. Provisions	6,349	6,657
4. Other liabilities	21,330	21,411
	252,823	193,317
D. Current liabilities	37,831	25,479
E. Deferred income	2,350	2,068
	519,891	418,624	+24%

Consolidated income statement for the period from January 1, 2005 – March 31, 2005 In EUR '000s

	Jan. 1-Mar. 31,	Jan. 1-Mar. 31,	Change in %
	2005	2004
Revenue	10,172	8,363	+ 22%
thereof rental income	8,176	6,936	+ 18%
Other operating income	253	273
Income from disposal of property	2,108	0
Aggregate operating performance	12,533	8,635	+ 45%
Depreciation/amortization	-3,018	-2.368
Other operating expenses	-3,951	-3,092
Earnings before interest and tax	5,564	3,176	+ 75%
Net financial loss	-2,629	-1,436
Earnings before tax	2,935	1,739	+69%
Income taxes	-524	-470
Net income for the period	2,411	1,269
Minority interests	0	0
Net profit for the period	2,411	1,269	+ 90%

Segment reporting as of March 31, 2005 (in EUR '000s)

			CZECH	SLOVAK
	AUSTRIA	HUNGARY	REPUBLIC	REPUBLIC	Total
Revenue	5,950	2,406	1,428	390	10,172
Earnings before interest and tax 1,685		1,085	2,600	194	5,564

Abriged consolidated cash flow statement for the period from January 1, 2005 – March 31, 2005 In EUR '000s

Jan. 1-Mar. 31, 2005 Jan. 1-Mar. 31, 2004			Change in %
Earnings before tax	2,935	1,739
Depreciation/amortization	3,018	2,368
Income from the disposal of property	-2,108	0
Income taxes paid	-35	-26
Net interest	2,629	1,436
Cash flow I	6,439	5,517	+ 17%

PRODUCTS OF s IMMOBILIEN AG

s IMMOBILIEN AG offers two attractive real estate products from a single source:

• s IMMO Aktie dividend reinvestment stock
• s IMMO INVEST dividend-paying participation certificates

The proprietary structure at s IMMOBILIEN AG is characterized by a strict separation of our products – s IMMO Aktie and s IMMO INVEST. The assets and returns of the two investment groups are accounted for separately.

s IMMO Aktie

Stock exchange data
ISIN No.	AT000 065225 0
Profit appropriation	reinvestment
Admitted to the stock exchange for	official trading
Trading segment	auction market
Reuters	SIAG.VI
Performance data as of March 31, 2005
Initial listing on June 28, 2002	7.10
Share price as of March 31, 2005	8.22
Annual performance	7.3%
Performance since initial listing	5.45%

Performance s IMMO Aktie Jun. 02 - März 05

Key figures for s IMMO Aktie
	Mar. 31, 2005	Mar. 31, 2004
Number of shares issued	33,412,479	30,375,000
Market capitalization (in EUR million)	274.6	232.6
Assets of s IMMO Aktie
in EUR '000s (carrying amounts)	Mar. 31, 2005	Mar. 31, 2004Change
Property portfolio	280,214	249,653	+ 12%
Equity investments	4	0
Receivables	26,288	11,568
Securities	7,128	2,000
Cash and cash equivalents	2,885	2,059
Prepaid expenses	318	1,241
Total assets	326,076	269,683	+ 21%
Non-current liabilities to banks	29,985	18,830
Provisions	2,684	2,549
Tenant contributions to construction and financing costs	12,074	11,971
Housing subsidies	6,969	7,458
Current liabilities	44,161	28,104
Total Liabilities	99,189	71,922
Equity	226,886	197,761	+15%

Key earnings figures for s IMMO Aktie
in EUR '000s	Mar. 31, 2005	Mar. 31, 2004Change
Revenue	5,928	5,028	+ 18%
Rental income	4,735	4,112	+ 15%
Earnings before interest and tax	3,105	1,730	+ 79%
Earnings before tax	2,771	1,571	+ 76%
Earnings after tax	2,411	1,269	+ 90%

Property assets increased significantly (+12%) in the reporting period in line with the expansion plan. Revenue also rose substantially, as clearly reflected in the growth of EBIT (+80%) and EAT (+90%).

s IMMO INVEST

Stock exchange data
ISIN No.	AT000 079573 7
Profit appropriation	annual dividend payments
Legal form	debenture-like participation right in accordance with § 174 of the Austrian Stock Corporation Act (AktG)
Admitted to the stock exchange for	official trading
Trading segment	other listings
Reuters	SIMIg.VI

Performance data
Initial listing on Dec. 29, 1996
Share price as of March 31, 2005	94.40
1 year	11.6%
3 years	8.7%
Performance since initial listing	8.8%

Since its initial listing, s IMMO INVEST has well outperformed the IATX benchmark index. Over the past years, s IMMO INVEST has well outperformed the ATX index as well as the IATX benchmark index.

Key figures for s IMMO INVEST participation certificate
	Mar. 31, 2005	Mar. 31, 2004
Share price on reporting date	94.40	88.95
Dividend payment in June 2005	4.36
Number of certificates issued	2,468,398	2,040,000
Market capitalization (in EUR million)	233.0	181.4

Assets of s IMMO INVEST (Participation certificate capital)
in EUR '000s (carrying amounts)	Mar. 31, 2005	Mar. 31, 2004	Change
Property portfolio	177,683	135,995	+31%
Equity investments	5,802	5,006
Receivables	49,136	26,912
Securities	4,752	0
Cash and cash equivalents	2,249	1,584
Prepaid expenses	107	645
Total Assets	245,618	171,796	+43%
Liabilities to Banks	28,946	10,977
Current liabilities	45,473	20,655
Total Liabilities	79,405	36,256
Participation certificate capital	166,214	135,441	+23%

Key earnings figures for s IMMO INVEST (participation certificate capital)
in EUR '000s	Mar. 31, 2005	Mar. 31, 2004	Change
Revenue	4,244	3,335	+ 27%
Rental income	3,441	2,824	+ 22%
Earnings before interest and tax	2,459	1,443	+ 70%

Not only did the property portfolio of s IMMO INVEST increase during the reporting period (+30%); revenue also increased markedly (+27%). Rental income from the s IMMO INVEST accounting group increased a pleasing 22%.

Property portfolio transactions

ARCADE Meidling

The Arcade Meidling is conceived as a modern shopping arcade, offering space for offices and leisure activities along with retail space.

Of particular interest is the public library and the music school housed in the arcade. A 20 year lease was concluded with the City of Vienna as operator of the two municipal organizations.

The property is located at the corner of Meidlinger Hauptstrasse and Wilhelmstrasse (Eichenstrasse) and can be accessed directly from both streets. The passage is a shortcut from the metro station to Meidling Hauptstrasse.

The U6 metro stops right in front of the Meidling Arcade (Philadelphiabrücke station). In connection with the Meidling Bahnof, the station is a highly-frequented regional traffic hub, offering possibilities to transfer to the high-speed city railway and other forms of public transportation (streetcar, Badner Bahn, various bus lines).

Long-term leases have been concluded with renowned tenants such as SPAR, Drogerie Müller, McDonald's and Starbucks for space of over 5,600 m².

Most of the office space has been leased to ÖBB-Infrastruktur Bau AG. The remaining office space has been rented individually to several different tenants.

The entire garage is leased to BOE Bauobjekt-Entwicklung Ges.m.b.H Co.KG.

BUDA Center in Budapest

Sparkasse Immobilien AG's fifth property in Budapest – the BUDA Center – is located in the 1st district of the city. With total floor space of approx. 6,000 m², the BUDA Center is one of our smaller properties in Budapest.

The building has a total of eight floors, with the basement level being used as an underground parking garage containing 65 parking spaces.

The rest of the building is used as office space and meets international standards for modern offices.

The current tenants have long-term leases. The most prominent names among them are HVB Leasing and Citibank.

Occupancy level

In the new year, new leases/renewals were concluded for space totaling 12,500 m². Our new tenants include long-standing organizations such as the Institute of Higher Learning (IHS) as well as young, dynamic enterprises like Sport&Concept.

Sparkassen Immobilien AG has excellent capacity levels in both accounting groups: For instance, the occupancy level for s IMMO INVEST is currently nearly 97%. An occupancy level of 90% was determined for s IMMO Aktie in the first quarter of 2005. These excellent capacity ratios are essential for the future earnings situation in both accounting groups and play a major part in the success of Sparkassen Immobilien AG.

MARKET REPORT Domestic report

AUSTRIA - VIENNA

The Austrian economy (real GNP) has been growing continuously since 2003 (2003: +0.8%; 2004: +1.9%). An additional increase of 2.4% is anticipated for 2005. Inflation was 2.1% in 2004, and the unemployment rate was approx. 4.2%. Total space leased in 2004 was approx. 280,000 m². This figure is expected to amount to approximately 140,000 m² for the first half of 2005. The vacancy rate will fall to approx. 6% in the course of 2005. Office rents are stabilizing, though pressure on rent levels is generally expected to continue in non-prime locations. The new office buildings completed in 2005 are already more than 50% pre-leased or foreseen for owner occupancy. In 2004, institutional investors in Austria invested approx. EUR 3.4 billion in real estate. The investment market was completely dominated by Austrian and German investors, while in previous years other international investors had shares of approx. 20% each.

Return on investment is increasingly determined by the quality of the lease (term of lease and credit quality of the tenant), and less by the location and quality of the property. The number of leases signed rose again in 2004.

Available office space is decreasing due to fewer new office buildings and a high level of preleasing.

Sparkassen Immobilien Aktiengesellschaft A-1060 Vienna Windmühlgasse 22-24

Phone: +43 (0) 5 0100 - 27550 Fax: +43 (0) 5 0100 – 27559

Investor Relations: Andreas Feuerstein e-mail: andreas.feuerstein@immorent.at

Franz Zaccaria e-mail: franz.zaccaria@immorent.at

http://www.s-immobilienag.at

We have prepared this interim report with the greatest possible care and checked all data. It is nevertheless not possible to rule out errors in rounding, transmission, typesetting or printing. The automated calculation of figures may result in what appear to be errors due to the rounding off of numbers.