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

Press Release

DIC Asset AG set for additional growth with a further capital increase

Frankfurt, 27.11.2006

This press release or the information contained therein is not being issued and may not be distributed in the United States of America, Canada, Japan or Australia.

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today announced that it will increase its issued share capital by Euro 8.16 million, from Euro 20.34 million to Euro 28.5 million, by issuing new shares. The 8,160,000 new shares will be offered to shareholders for subscription at a price of Euro 23.50, subject to a subscription ratio of two new shares for each five shares held (excluding a fractional amount of 24,000 shares). The subscription period for the new shares will commence on 29 November 2006, and is expected to end on 12 December 2006. The new shares carry full dividend rights from 1 January 2006. With the rights issue, the company is exercising the Authorised Capital resolved by the Annual General Meeting on 5 May 2006. Starting tomorrow, the Management Board of DIC Asset AG will embark on a roadshow, to present DIC Asset AG to numerous German and international investors.

Demonstrating their support for DIC Asset AG’s sustained growth, the Company’s major shareholders – Deutsche Immobilien Chancen AG & Co. KGaA, Forum S.à.r.l. and Morgan Stanley Real Estate Funds (MSREF) – indicated that they will each exercise around 57% of their subscription rights. The approx. 2.1 million shares not subscribed for by the major shareholders, together with any other new shares not subscribed for, plus the fractional amount, will be offered for sale in an international private placement after the end of the subscription period. Accordingly, DIC Asset AG’s free float is expected to increase from currently around 39% to approximately 47%, further enhancing the liquidity of the share.

DIC Asset AG will apply the net issue proceeds of approx. Euro 185 million predominantly to finance further acquisitions of real estate assets. Initial transactions are expected to be concluded before the end of the year: DIC Asset AG is currently in co-investment negotiations – in some cases on an exclusive basis – for various transactions, with an aggregate volume of up to Euro 350 million.

To enable the company to capitalise on market opportunities arising, DIC Asset AG had already doubled its equity base in the spring of 2006. With an aggregate transaction volume exceeding one billion euros since May 2006, the proceeds raised have been invested successfully to a very large extent. The new capital increase will provide the resources required to maintain the growth momentum in DIC Asset AG’s business.

Deutsche Bank and Morgan Stanley have been mandated as joint lead managers.

Ulrich Höller, Chief Executive Officer, pointed out that the performance of the DIC Asset AG share price during 2006 clearly reflected the company's dynamic growth strategy: “The share price has risen by nearly 30 per cent since the capital increase and IPO in the spring, from Euro 22 to Euro 28.40 (closing price on 24 November). DIC Asset AG thus offers its shareholders an outstanding return compared to German and European real estate issues. We will continue this successful development, in the interest of our shareholders. The economic environment provides an excellent framework, as we envisage large investment volumes in the coming years. DIC Asset AG will participate significantly in these flows, thanks to its clear focus on German commercial real estate, combined with its expertise and local presence in the German market.”

Frankfurt-based DIC Asset AG reported another very successful financial year 2006: nine-month operating results (based on EBITDA – earnings before interest, income taxes, depreciation and amortisation) rose by 43 per cent, to Euro 16.6 million, whilst consolidated net income more than doubled from the first nine months of 2005, to Euro 6.4 million (+156%). Net asset value (NAV) per share increased from Euro 14.00 at the beginning of 2006, to Euro 20.10.

During the third quarter of 2006 the DIC Asset share outperformed its benchmarks: its 41 per cent gain puts the share well ahead of the SDAX (+ 5 per cent) and the EPRA/NAREIT Europe index (+13 per cent), the benchmark index for European real estate issues.

DIC Asset AG has been included in the SDAX® segment of the Frankfurt Stock Exchange since June 2006.

About DIC Asset AG
Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. DIC Asset AG’s real estate portfolio currently includes around 780,000 sqm of floor space, spread over 217 properties. The portfolio is divided into three segments: the Core portfolio includes the proprietary portfolio held on a long-term basis and offering stable, attractive rental yields; the Value-Added portfolio contains real estate with promising performance potential over the medium term; while the Opportunistic Co-Investments portfolio is comprised of real estate investments that have a more pronounced risk/return profile, which will be placed with third parties following a repositioning under an individual business plan. Real estate assets under management currently amount to approx. Euro 1.9 billion.

This publication constitutes neither an offer to sell nor a solicitation to buy securities. The offer is being made solely by means of, and on the basis of, the published securities prospectus dated November 27, 2006 (including any amendments thereto, if any). The securities prospectus is available free of charge from Deutsche Bank AG, Große Gallusstraße 10-14, 60311 Frankfurt am Main or Morgan Stanley Bank AG, Junghofstraße 13-15, 60311 Frankfurt am Main or on the DIC Asset AG website (www.dic-asset.de).
This press release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. DIC Asset AG does not intend to register any portion of the offering in the United States or conduct a public offering of securities in the United States.
This communication is directed only at persons (I) who are outside the United Kingdom or (II) who have professional experience in matters relating to investments falling within article 19(5) (“investment professionals”) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”) or (III) who fall within article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Order (all such persons together being referred to as “Relevant Persons”). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

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