S Immo AG — Interim / Quarterly Report 2005

May 2, 2007

Sparkassen Immobilien AG Report on the first half of 2005

Dear Ladies and Gentlemen, Shareholders and Investors,

Hype from real estate investment companies, constant capital increases – is it even possible to invest so much capital securely and with a high return on investment?

Investors looking for a sound investment in real estate securities are facing this question more and more frequently. A few years ago, the world of real estate stocks in Austria was still simple and transparent. The few real estate stocks listed on the Vienna Stock Exchange led a very modest existence, with former "savings account customers" being the main group to try alternative investments in real estate stocks.

Now, however, most investors cannot even conceive of a portfolio without real estate securities. This has led to higher expectations for product standards along with an increase in supply.

As one of the first real estate security companies in Vienna, Sparkassen Immobilien AG is optimally positioned to ensure that investments in s IMMO Aktie and s IMMO INVEST will remain a high-yield and stable part of your investment portfolio.

We focus on investment stability and sustained yields, only executing capital increases if we have promising prospective investments, and then only to the extent that we are able to maintain controlled growth without impacting quality.

This situation occurred during the reporting period – Sparkassen Immobilien AG found promising properties in Austria and abroad and took the steps necessary for expansion by implementing a capital increase for s IMMO INVEST.

We are pleased to be able to present you with the good news from Sparkassen Immobilien AG in the form of impressive half-year figures.

Your Management Board Team

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

Consolidated balance sheet as of June 30, 2005 (in EUR '000s) ASSETS

	June 30, 2005	June 30, 2004	Change in %
A. Non-current assets
I. Intangible assets	34	79
II. Property, plant and equipment	520,209	388,890	+ 34%
III. Financial assets	6,006	5,206
IV. Non-current assets	1,111	338
	527,360	394,513	+34 %
B. Current assets
I. Receivables	25,293	15,505
II. Investments	75,917	0
III. Cash and cash equivalents	8,820	3,800
	110,030	19,305
C. Prepaid expenses	408	1,754
	637,798	415,572	+53%
EQUITY AND LIABILITIES	30.06.2005	30.06.2004
A. Equity	228,444	199,720	+ 14%
B. Minority interests	1,196	0
C. Non-current liabilities
1. Debenture-like participation rights	282,822	134,576	+ 110%
2. Non-current liabilities to banks	68,620	32,473	+ 111%
3. Provisions	9,627	7,122
4. Other liabilities	21,094	21,278
	382,163	195,449
D. Current liabilities	23,735	18,373
E. Deferred income	2,259	2,030
	637,798	415,572	+ 53%

Consolidated income statement for the period from January 1, 2005 – June 30, 2005 In EUR '000s

	Jan.1-June 30, 2005 Jan.1-June 30, 2004		Change in %
Revenue	20,507	17,124	+ 20%
thereof rental income	16,451	14,156	+ 16%
Other operating income	2,134	566
Income from disposal of property	2,108	44
Aggregate operating performance	24,749	17,734	+ 40%
Depreciation/amortization	-6,306	-4,699
Other operating expenses	-7,957	-6,282
Earnings before interest and tax	10,486	6,753	+ 55%
Net financial loss	-4,777	-3,106
Earnings before tax	5,709	3,647	+ 57%
Income taxes	-1,556	-638
Net income for the period	4,153	3,009
Minority interests	-135	0
Net profit for the period	4,018	3,009	+33%

Segment reporting as of June 30, 2005 (in EUR '000s)

	Austria	%	Hungary	%	Czech Republic	%	Slovakia	%	Total
Revenue	11,865	58	4,949	24	2,917	14	777	4	20,507
Earnings before interest	3,336	32	2,672	25	4,082	39	396	4	10,486
and tax

Abriged cash flow statement for the period from January 1, 2005 – June 30, 2005 In EUR '000s

	Jan.1-June 30, 2005	Jan.1-June 30, 2004	Change in %
Earnings before tax	5,709	3,647
Depreciation/amortization	6,306	4,699
Income from disposal of property	-2,108	-44
Income taxes paid	-63	-29
Net interest	4,777	3,106
Cash flow I	14,621	11,379	+ 28%

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 June 30, 2005

Initial listing on June 28, 2002	7.10
Share price as of June 30, 2005	8.18
Annual performance	4.6%
Performance since initial listing	4.78%

Performance s IMMO Aktie seit Erstnotiz

Key figures for s IMMO Aktie
	June 30, 2005	June 30, 2004
Share price as of June 30, 2004	8,18	7,82
Number of shares issued	33,412,279	30,375,000
Market capitalization (in EUR million)	273.3	237.5
Cash flow per share (in EUR)	0.21	0.21
Price/cash flow ratio	19	18
Assets of s IMMO Aktie
in EUR '000s (carrying amounts)	June 30, 2005	June 30, 2004Change
Property portfolio	317,025	251,990	+26%
Equity investments	4	0
Receivables	31,967	11,198
Securities	7,148	0
Cash and cash equivalents	4,980	2,217
Prepaid expenses	296	1,150
Total assets	362,689	267,116	+ 36%
Liabilities to Banks	39,576	20,354
Other liabilities	71,910	24,800
Tenant contributions to construction and financing costs	19,942	20,211
Total Liabilities	131,428	65,365	+101 %
Equity	228,444	199,720	+ 14%

Key earnings figures for s IMMO Aktie
in EUR '000s	June 30, 2005	June 30, 2004Change
Revenue	12,020	10,287	+ 17%
Rental income	9,605	8,381	+ 15%
Earnings before interest and tax	6,047	4,065	+ 49%
Earnings before tax	5,206	3,570	+ 46%
Earnings after tax	4,099	3,009	+ 36%

By consistently continuing its expansion strategy, the company managed to increase the property portfolio of s IMMO Aktie by 26% in the reporting period. The recent property purchases naturally took into account our strict quality criteria for location, tenants and building construction, which was reflected in significant earnings growth, for example the increase in EBIT of 49%.

s IMMO INVEST

Stock exchange data
ISIN No.	AT000 079573 7 / AT000 063069 0
Profit appropriation	annual dividend payments
	debenture-like participation right in accordance with
Legal form	§ 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 June 30, 2005	91.20
1 year	12.9%
3 years	8.5%
Performance since date of issue	8.8%

Performance s IMMO INVEST (versus Immobilien - ATX)

Performance including annually dividend payments.

Over the past years, s IMMO INVEST has well outperformed the IATX benchmark index.-

Key figures for s IMMO INVEST participation certificate
	June 30, 2005	June 30, 2004
Share price as of June 30, 2004	91,20	84,64
Number of certificates issued	3,883,398	2,040,000
Market capitalization (in EUR million)	354.2	172.7
Cash flow per certificate	2.18	2.34
Price/cash flow ratio	21	18

Assets of s IMMO INVEST (participation
certificate capital)
in EUR '000s (carrying amounts)	June 30, 2005	June 30, 2004	Change
Property portfolio	203,184	136,900	+48 %
Equity investments	5,802	5,006
Receivables	71,774	21,389
Securities	68,769	0
Cash and cash equivalents	3,841	1,583
Deferred assets	112	604
Total assets	353,559	165,537	+ 113%
Liabilities to Banks	29,044	12,118
Other liabilities	41,054	18,843
Tenant contributions to construction and financing costs	0	0
Total Liabilities	70,098	30,961	+126 %
Participation certificate capital	282,822	134,576	+110 %

Key earnings figures for s IMMO INVEST (participation certificate capital)
in EUR '000s	June 30, 2005	June 30, 2004	Change
Revenue	8,487	6,836	+ 24%
Rental income	6,845	5,775	+ 18%
Earnings before interest and tax	4,439	2,692	+65%
Earnings before tax	4,053	3,007	+34%
Earnings after tax	3,604	2,930	+23%

A significant capital increase took place during the reporting period for s IMMO INVEST (the second this year) in the amount of more than EUR 127 million. The 1,415,000 new participation certificates were placed primarily in Austria, though also with new international investors in Germany, Sweden, the United Kingdom and Switzerland.

The property portfolio increased nearly 46% in comparison with the prior-year period, with assets under construction growing an impressive 474%! Revenue rose 24%, with the increase in rental income amounting to 18%. EBIT grew 65%, and earnings before tax increased 34.8%.

Property portfolio transactions

Marriott Budapest

This centrally located property of the globally renowned Marriott hotel group has 362 rooms and is in one of Budapest's most prominent hotel locations in the city center, directly on the Danube River.

ARCADE Meidling

The property in Vienna's 12th district offers around 18,600 m² (including green areas), which is divided more or less equally between office and retail space. The Arcade's most wellknown tenants are ÖBB, Spar and Kaufhaus Müller as well as the Vienna Public Library. The property is in an easy-to-reach location.

BudaCenter (Budapest)

This office building in Budapest with excellent visibility comprises total space of 7,600 m². The building enjoys excellent links to the surrounding infrastructure. Its most prominent tenants, who have concluded long-term leases, include HVB Leasing and Citibank, among others.

Occupancy level

In the current fiscal year, new long-term leases were signed with renowned tenants such as the Finnish group TietoEnator for total space of approx. 14,000 m².

Occupancy levels are very good for both accounting groups, lying over the average levels for our investment areas.

The capacity ratio for s IMMO INVEST is approx. 93%.

Vacancy rates for properties in the s IMMO Aktie accounting group were under 10% during the reporting period.

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 Franz Zaccaria e-mail: office.s-immobilien@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.