S Immo AG — Share Issue/Capital Change 2007

May 8, 2007

Stock Exchange Announcement

Vienna, 2 June 2006

Sparkassen Immobilien AG announces capital increase and acquisition of Berlin properties worth EUR 72 mn

Today, the Management Board of Sparkassen Immobilien AG resolved to increase the Company's share capital. The Management Board's decision was approved by the Supervisory Board on the same date.

As already announced the Company plans to increase its capital to finance further acquisitions in Austria, Germany and Central and Eastern Europe. In this context, the Company will launch a combined offering of up to 43.853.879 new shares consisting of a rights offering to existing shareholders in the ratio of 7 new shares for each 8 existing shares held, a public offering in Austria, Germany and the Czech Republic and a private placement in Europe. The subscription period for the rights offering will start on 7 June and is expected to end on 23 June 2006. Subscription rights shall not be traded. The public offering and private placement will start on June 7 and is expected to end on June 26, 2006. Subscription and offer price for the new shares shall not be higher than EUR 9.90 per new share. The final price of the new shares is expected to be fixed and published on 26 June 2006. The new shares are expected to be listed on the official market of the Vienna Stock Exchange (standard market auction) as of 29 June 2006.

Erste Bank and BNP Paribas will act as joint global coordinator, lead managers and bookrunners of the combined offering. Bayrische Landesbank will act as co-lead manager, and Brokerjet, Česká Spořitelna and Cortal Consors, as selling agents.

The company recently acquired a portfolio in Berlin, consisting of 6 residential properties, a housing complex and a mixed property complex with residential, office and student boarding house. The total investment amounts to some EUR 72 mn. The lettable area of this acquisition is app. 70.000 m2, bringing the total lettable space of the company to 673.000 m2.

A prospectus prepared in accordance with Commission Regulation (EC) No. 809/2004, the provisions of the Austrian Capital Markets Act and Stock Market Act was approved by the Austrian Financial Markets Authority and the competent authorities in the Czech Republic and Germany and duly published on the date hereof and can be obtained free of charge during normal business hours from Sparkassen Immobilien AG, Windmühlgasse 22-24, A-1060 Vienna, Austria and Erste Bank der oesterreichischen Sparkassen AG, Graben 21 (banking hall, Information Desk), A-1010 Vienna, Bayerische Landesbank, Brienner Strasse 18, D-80333 Munich, Germany and Česká Spořitelna a.s., Na Perštýně 1; 113 98 Prague 1, Czech Republic.

Important notice. The information contained in this announcement constitutes neither an offer to sell nor an invitation or recommendation to purchase or subscribe to shares in the Company. Applications to subscribe will only be accepted as of 7 June 2006. The shares will be offered by way of public offering to retail and institutional investors in Austria, the Czech Republic, and Germany, and by means of a private placement to institutional investors in Europe outside Austria, the Czech Republic, and Germany. The shares are not offered for sale to investors in or from countries in which such an offer is unlawful, and in particular there is no offer for sale in the United States, Canada, Japan or (to the extent not permitted by law) the United Kingdom. Failure to observe this restriction represents an offence under US, Canadian, Japanese or British capital markets legislation, or against the applicable statutory provisions of other countries. Investors are required to satisfy themselves that they are not in breach of the applicable regulations.

Contact: Sparkassen Immobilien AG, Press and Public Relations Mariahilferstrasse 41-43, A-1060 Vienna, fax: +43 050100 27559 Elke Koch, tel: +43 050100 27402, e-mail: ElkePetra.Koch@immorent.at www.sparkassenimmobilienag.at