“The challenging economic environment, which is causing global real estate enterprises and their shares to be caught up in the maelstrom of the financial crisis triggered by the American banking sector, requires a rapid and efficient response. After years of dynamic expansion, the group's focus will shift to consolidation and an adjustment of financing structures. Furthermore, we will focus on measures to safeguard liquidity by strongly reducing development projects and liquidating portions of our real estate portfolio. In parallel, we will fully evaluate the advantages of a merger between IMMOFINANZ and IMMOEAST. Should the evaluation come out in favour of a merger with respect to the interests of the respective shareholders and companies, we will pursue this option”, says Thomas Kleibl with regard to the company's strategic focus on assuming office.

He continues: “As far as I can judge from my short period in office, the IMMOFINANZ Group is a solid real estate company of European dimensions with intrinsic value whose staff members have valuable expertise that will be an important asset for the future development of the company. My commitment is towards ensuring long-term appreciation for our shareholders. The fundamentals for this include solid corporate structures and an ambitious strategy combined with sound risk management, corporate transparency, modern corporate governance and quality in the implementation of these measures. I have taken this position so as to meet these challenges together with my team.”

Against the backdrop of current discussions regarding the financial situation, the following statement is issued: The intercompany loan by IMMOEAST AG to IMMOFINANZ AG will be repaid, as has been previously stated. The capital from the loan was invested for the long-term in real estate projects. In the light of the crisis on the financial markets, it would be value-destroying to liquidate these projects in the short-term. These projects will be sold over the medium-term in order to service the loan, based on the development of the markets and business considerations.

In order to invest liquid assets from the capital increase, IMMOEAST AG subscribed a corporate bond. Interest is 350 points above the 12 month EURIBOR, around EUR 520 m of the bond are currently outstanding. The bond is callable at any time. Repayment is secured.

The world has changed significantly over the last few weeks, and there are no reliable predictions as to when these developments will come to a close. This has effects on both companies, and must be taken into account when determining the companies' long-term strategies. A merger, the details of which are currently still being evaluated with strong consideration placed on the interests of the respective owners, would, given the current understanding, lead to a rise in value for both groups of shareholders. Should the result of the evaluation be in favour of a merger, general meetings are intended to be held in the first quarter of 2009.

Thomas Kleibl, who is assuming his position as spokesman of the boards at IMMOFINANZ AG and IMMOEAST AG as of today, will be a member of the board at IMMOFINANZ AG along with Daniel Riedl, Christian Thornton and Michael Wurzinger; and together with Edgar Rosenmayr and Christian Thornton at IMMOEAST AG. His term in office will end 31 October 2011.