Announcement

TAG AG with higher consolidated earnings in 2006

PRESS RELEASE Preliminary figures for fiscal 2006 TAG with higher consolidated earnings in 2006

TAG AG with higher consolidated earnings in 2006

TAG Tegernsee Immobilien u. Beteiligungs AG / Preliminary Results

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE

Preliminary figures for fiscal 2006

TAG with higher consolidated earnings in 2006

  - Increase in consolidated EBT to EUR 6.4 million

  - Record earnings posted by subsidiary Bau-Verein zu Hamburg in 2006

(Hamburg, April 3, 2007). TAG Tegernsee Immobilien- und
Beteiligungs-Aktiengesellschaft, Hamburg (TAG) closed 2006 with a
substantial increase in earnings. Earnings before tax (EBT) came to EUR 6.4
million, reversing the previous year’s loss of EUR 32.3 million and
exceeding the guidance of EUR 6.0 million which had been raised in August
2006. Consolidated post-tax earnings came to EUR 2.8 million, an
improvement over the previous year’s loss of EUR 35.5 million.

As expected, sales in 2006 contracted from EUR 153.6 million to EUR 107.3
million as a result of the focus on portfolio management. Sales from
facility and asset management rose from EUR 31.7 million in 2005 to EUR
34.6 million in 2006, while total proceeds of EUR 72.7 million were
generated from the sale of properties.

Real estate assets rose from EUR 374 million in the previous year to EUR
516 million.

Equity capital increased from EUR 92 million as of December 31, 2005 to EUR
289 million at the end of 2006, resulting in an improvement in the equity
ratio from 19.1 percent to 41.6 percent.

Bau-Verein zu Hamburg AG, a subsidiary of TAG, closed 2006 with record
earnings. Consolidated earnings before tax (EBT) surged more than fourfold
from EUR 3.9 million in the previous year to EUR 16.4 million in 2006, with
consolidated post-tax earnings rising from EUR 1.0 million to EUR 14.6
million. The equity ratio widened from 23.7 percent in the previous year to
35.7 percent as of December 31, 2006.

The inclusion in the S-DAX has additionally heightened the appeal of TAG
stock and is strengthening the Company’s position as an established real
estate company. At the end of the year under review, TAG was trading at EUR
9.24 and is currently at EUR 10.24. The net asset value, which was
disclosed for the first time in October 2006, rose in the last quarter of
the year from € 10.22 to € 11.00 per share.

Says Andreas Ibel, chairman of TAG’s management board: 'The figures for
2006 testify to the success of our strategic realignment. Our 'buy, build
and hold' strategy is continuing to focus on diversified real estate
portfolios with attractive rental yields and development potential in major
German cities.

In fiscal 2006, we invested an amount of EUR 250 million in the acquisition
of German real estate. We are planning further acquisitions in 2007 to
additionally broaden our real estate holdings.

The figures stated here for the financial year ending December 31, 2006 are
preliminary subject to approval and adoption by the Supervisory Board.

Press inquires:

TAG Tegernsee Immobilien- und

Beteiligungs-Aktiengesellschaft

Public Relations

Kirsten Schleicher

Tel. +49 (0) 40 380 32 300

Fax +49 (0) 40 380 32 388

info@tag-ag.com






DGAP 03.04.2007 
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Language:     English
Issuer:       TAG Tegernsee Immobilien u. Beteiligungs AG
              Steckelhörn 9
              20457 Hamburg Deutschland
Phone:        +49 (0)40 30 60 59-40
Fax:          +49 (0)40 30 60 59-49
E-mail:       info@tag-ag.com
www:          www.tag-ag.com
ISIN:         DE0008303504
WKN:          830350
Indices:      SDAX
Listed:       Amtlicher Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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