The DIC Group is one of the leading investors in the German market for commercial real estate

Press Release

DIC Asset AG in SDAX

Frankfurt, 07.06.2006

The shares of DIC Asset AG (WKN 509840/ ISIN DE0005098404) will be listed on the SDAX as of 19 June 2006. This was announced by Deutsche Börse following its latest meeting concerning the future composition of the SDAX.

Ulrich Höller, Chairman of the Board of DIC Asset AG: “This decision confirms that our profit orientated growth strategy has been successful. DIC Asset AG will continue to rely on new, profitable acquisitions during the current year, so that we will further increase the turnover and result by the end of the year.

DIC Asset AG, with registered offices in Frankfurt am Main, which was established in 2002, is a property company exclusively focusing investments on commercial properties in Germany and yield orientated investment policies. The property portfolio of DIC Asset AG currently consists of almost 280,000 sqm of usable area, distributed amongst 126 properties. The property portfolio consists of three segments: The Core portfolio covers the longer-term own portfolio with stable and attractive rental yields; the Value Added portfolio consists of properties with interesting potential for capital growth in the medium-term investment focus; the Opportunistic Co-Investments consist of property investments with a higher yield-risk profile, after repositioning these will be placed elsewhere in an individual business plan. The managed property portfolio currently amounts to around 790 million euro. The properties currently include the eBay head office, the central administration of Pfleiderer AG, the property portfolio of the Frankfurter Sparkasse as well as a holding in a diversified portfolio throughout Germany, which was purchased at the end of 2005 from MEAG jointly with the Morgan Stanley Real Estate Funds (MSREF).

In the second quarter of 2006, with three further transactions, DIC Asset AG has continued its dynamic growth rate and has purchased as an investor or co-investor 13 properties with an investment in excess of 200 million euro, as well as a total floor space in excess of 130,000 sqm: 10 commercial properties of the Hochtief Group as well as 3 office buildings in Köln, Hannover and Nürnberg.

Regarding the result of the 1st Quarter 2006:

The result in the first quarter of 2006 of DIC Asset AG was characterized by strong growth and high profitability. Consequently, DIC Asset AG was able to triple the consolidated net profit by 1 million euro to 1.3 million euro compared with the 1st quarter of 2005. This dynamic development is mainly due to the strong rise in rental income as well as improved net interest income. Rental income in the 1st quarter has increased considerably by 33% (by comparison to Q1/2005) to 6.0 million euro, which is due to the increase in the property portfolio to a usable area of almost 270,000 sqm (+ 24% compared with the end of 2005). Total expenditure increased in parallel as planned by 1.1 million euro to 3.6 million euro, which is mainly due to the hiring of new personnel.

The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased in the 1st quarter by 16% to 4.3 million euro. The EBIT (Earnings Before Interest and Tax) was increased in the period under review by 15% to 3.2 million euro.

The balance sheet total of DIC Asset AG increased as per 31 March 2006 to 401.9 million euro (31.12.2005: 369.8 million euro).

In May 2006, DIC Asset AG doubled its share capital to 20.34 million euro. Most of the capital increase was placed with more than a 10-fold oversubscription on the market, so that the company was able to expand its free float to around 39%.

The Annual General Meeting of DIC Asset AG on 5 May 2006, had approved a dividend of 56 cents per share (2004: 35 cents) for the financial year 2005, as well as an approved share capital of 10.17 million euro.

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