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

Press Release

DIC Asset AG plans Public Offering on Prime Standard of Frankfurt Stock Exchange for the second quarter 2006

Frankfurt, 06.04.2006

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) plans to double its issued share capital, as per the resolution passed by the Extraordinary General Meeting on 3 February 2006, and to list its shares in the Prime Standard segment in the second quarter 2006. The funds raised from the capital increase of 10.17 million new shares, increasing the share capital to EUR 20.34 million, will accrue solely to the benefit of the company.

In addition to growing the company’s capital base, this is intended to achieve two additional key objectives:

• Prospective investors are provided with an opportunity to acquire a stake in the company. For this purpose, the free float will be increased from its currently 5% (approx.) to about 40% after the Offering.
• The existing major shareholders will continue to be invested and actively support the Company’s continued strategic development.

As a result of the capital increase and the associated significant rise in free float, the share of Deutsche Immobilien Chancen AG &Co. KGaA (presently over 80%) will be reduced to over 40%. In addition, two strategic investors for the Company, have expressed their interest in increased exposure: the US-based investor Forum Partners wishes to increase its current 5% share to 7%; and Morgan Stanley Real Estate Funds (MSREF), who have been holding an indirect interest in DIC Asset AG, now intend to acquire a direct shareholding of over 10%.

Further details regarding the capital increase are expected to be released in conjunction with the publication of the securities prospectus in late April.

Deutsche Bank and Morgan Stanley have been mandated as joint bookrunners.

Ulrich Höller, Chairman of the Management Board, commented: “We will use the issue proceeds from the capital increase to significantly expand our portfolio, boosting our exposure to the increasingly attractive and dynamic high-growth market of German commercial real estate. We are set to realise this enormous potential by leveraging our core expertise, and our focused market access for the Company.”

2005 was another highly successful year for Frankfurt-based DIC Asset AG, with the Company’s operational results (EBITDA) rising by 61% to EUR 18.7 million (2004: EUR 11.6 million). EBIT grew by 65% to EUR 14.7 million (2004: EUR 8.9 million). At EUR 6.4 million, the consolidated net income almost doubled (2004: EUR 3.3 million).

The DIC Asset share is currently listed on the Regulated Unofficial Market (Freiverkehr) at the Frankfurt, Munich and Stuttgart stock exchanges. In December 2005, the share was included in electronic trading on Xetra®. As part of the Public Offering, it is intended to apply for admission of the entire share capital to Official Trading (amtlicher Handel) at the Frankfurt Stock Exchange.

About DIC Asset AG
Established in 2002, DIC Asset AG with registered offices in Frankfurt is a real estate company having a dedicated investment focus on commercial real estate in Germany and pursuing a return-oriented investment policy. DIC Asset AG’s real estate portfolio currently includes just under 270,000 sqm of floor space, spread over 127 properties. The company’s real estate portfolio is divided into three segments: the Core portfolio includes real estate assets held on a long-term basis and offering stable, attractive rental yields. The Value-added portfolio contains real estate with an attractive value-enhancement potential over the medium term. The Opportunistic Co-Investments portfolio is comprised of participations in real estate investments having a more pronounced risk/return profile; the underlying assets will be sold following a repositioning under specific business plan. The real estate portfolio currently being managed totals approx. EUR 780 million and includes properties such as the ebay headquarters, the Pfleiderer AG head office, the real estate portfolio of Frankfurter Sparkasse (the Frankfurt savings bank) as well as an interest in a highly diversified portfolio across Germany, which was acquired from MEAG in late 2005 together with the Morgan Stanley Real Estate Funds (MSREF).

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