Announcement

TAG still on its growth path

PRESS RELEASE Report on the 1st quarter of 2007 TAG Tegernsee still on its growth path - Consolidated

TAG still on its growth path

TAG Tegernsee Immobilien u. Beteiligungs AG / Quarter Results

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

Report on the 1st quarter of 2007

TAG Tegernsee still on its growth path

- Consolidated earnings achieved in the 1st quarter of 2007

- Full-year EBT of around EUR 30 million expected

- G-REIT with real estate assets of at least EUR 300 million planned

(Hamburg, May 16, 2007). TAG Tegernsee Immobilien- und
Beteiligungs-Aktiengesellschaft (hereinafter referred to as TAG)
successfully continued its growth strategy in the 1st quarter of 2007 as
well. The Group is planning further acquisitions of residential and
commercial real estate in 2007. At the same time, it is preparing a G-REIT
with real estate assets of at least EUR 300 million. For 2007 as a whole,
it forecasts consolidated earnings before tax (EBT) of around EUR 30
million.

In the first three months of the year, the TAG Group’s new structure with
one company or subgroup each responsible for commercial real estate,
residential real estate and real estate asset management proved to be
successful: As expected, total assets widened from EUR 693 million to EUR
710 million due to the Group’s ongoing successful acquisition activities as
well as the gains in the value of its real estate achieved as a result of
active portfolio management. Equity rose from EUR 289 million at the end of
2006 to EUR 290 million at the end of the first quarter, translating into
an equity ratio for the TAG Group of around 41 percent.

Income from the rental and management of real estate rose by 69 percent
from EUR 5.8 million to EUR 9.8 million, while the share of sales proceeds
shrank from EUR 8.8 million to EUR 3.1 million in line with expectations.
All told, revenues in the first quarter of 2007 fell from EUR 14.6 million
to EUR 12.8 million as planned. At the core of TAG’s activities is the buy,
build and hold strategy, which seeks to create long-term value for the
portfolio by means of development activities. TAG’s consolidated post-tax
earnings more than doubled from around EUR 0.6 million at the end of 2006
to EUR 1.3 million at the end of the first quarter of 2007.

The Bau-Verein zu Hamburg Group, a subsidiary of TAG focusing on
residential real estate in German metropolitan regions, also reported a 62
percent increase in rental and management income over the year-ago quarter
to EUR 6.8 million. All told, revenues dropped from EUR 11.0 million in the
first quarter of 2006 to EUR 9.0 million in the first quarter of 2007 in
line with expectations.  At the same time, total assets rose from EUR 329
million to EUR 342 million at the end of the period under review thanks to
the acquisition of a residential real estate portfolio and the increased
value of the investment properties held. At 35 percent, Bau-Verein’s equity
ratio was unchanged over 31 December 2006.

Says Andreas Ibel, chairman of TAG’s management board: 'We will be
continuing TAG’s growth strategy and steadily increasing our real estate
portfolios. In April we invested EUR 40 million in two attractive
commercial real estate packages in central locations in Hamburg and
Nuremberg. Further acquisitions of residential and commercial properties
are currently being reviewed. In this way, TAG is ideally positioned for
its next strategic steps: We plan to place a G-REIT with total assets of
over EUR 300 million in the market before the end of 2007.'

Listed in the SDAX, TAG stock gained 7.8 percent in the period under
review, closing the quarter at EUR 10.24. As a result, TAG was the
best-performing amongst the top ten German listed real estate companies in
the 1st quarter of 2007.

Press inquiries:

TAG Tegernsee Immobilien- und

Beteiligungs-Aktiengesellschaft

Head of public relations

Kirsten Schleicher

Tel. +49 (0) 40 380 32,300

Fax +49 (0) 40 380 32 388

pr@tag-ag.com






DGAP 16.05.2007 
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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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