TAG still on its growth path

TAG Tegernsee Immobilien u. Beteiligungs AG / Quarter ResultsRelease of a Corporate News, transmitted by DGAP - a company of EquityStoryAG.The issuer / publisher is solely responsible for the content of this announcement.----------------------------------------------------------------------PRESS RELEASEReport on the 1st quarter of 2007TAG 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- undBeteiligungs-Aktiengesellschaft (hereinafter referred to as TAG)successfully continued its growth strategy in the 1st quarter of 2007 aswell. The Group is planning further acquisitions of residential andcommercial real estate in 2007. At the same time, it is preparing a G-REITwith real estate assets of at least EUR 300 million. For 2007 as a whole,it forecasts consolidated earnings before tax (EBT) of around EUR 30million.In the first three months of the year, the TAG Group’s new structure withone company or subgroup each responsible for commercial real estate,residential real estate and real estate asset management proved to besuccessful: As expected, total assets widened from EUR 693 million to EUR710 million due to the Group’s ongoing successful acquisition activities aswell as the gains in the value of its real estate achieved as a result ofactive portfolio management. Equity rose from EUR 289 million at the end of2006 to EUR 290 million at the end of the first quarter, translating intoan equity ratio for the TAG Group of around 41 percent.Income from the rental and management of real estate rose by 69 percentfrom EUR 5.8 million to EUR 9.8 million, while the share of sales proceedsshrank 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 millionto 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 theportfolio by means of development activities. TAG’s consolidated post-taxearnings more than doubled from around EUR 0.6 million at the end of 2006to EUR 1.3 million at the end of the first quarter of 2007.The Bau-Verein zu Hamburg Group, a subsidiary of TAG focusing onresidential real estate in German metropolitan regions, also reported a 62percent increase in rental and management income over the year-ago quarterto EUR 6.8 million. All told, revenues dropped from EUR 11.0 million in thefirst quarter of 2006 to EUR 9.0 million in the first quarter of 2007 inline with expectations.  At the same time, total assets rose from EUR 329million to EUR 342 million at the end of the period under review thanks tothe acquisition of a residential real estate portfolio and the increasedvalue of the investment properties held. At 35 percent, Bau-Verein’s equityratio was unchanged over 31 December 2006.Says Andreas Ibel, chairman of TAG’s management board: 'We will becontinuing TAG’s growth strategy and steadily increasing our real estateportfolios. In April we invested EUR 40 million in two attractivecommercial real estate packages in central locations in Hamburg andNuremberg. Further acquisitions of residential and commercial propertiesare currently being reviewed. In this way, TAG is ideally positioned forits next strategic steps: We plan to place a G-REIT with total assets ofover EUR 300 million in the market before the end of 2007.'Listed in the SDAX, TAG stock gained 7.8 percent in the period underreview, closing the quarter at EUR 10.24. As a result, TAG was thebest-performing amongst the top ten German listed real estate companies inthe 1st quarter of 2007.Press inquiries:TAG Tegernsee Immobilien- undBeteiligungs-AktiengesellschaftHead of public relationsKirsten SchleicherTel. +49 (0) 40 380 32,300Fax +49 (0) 40 380 32 388pr@tag-ag.comDGAP 16.05.2007 ---------------------------------------------------------------------- Language:     EnglishIssuer:       TAG Tegernsee Immobilien u. Beteiligungs AG              Steckelhörn 9              20457 Hamburg DeutschlandPhone:        +49 (0)40 30 60 59-40Fax:          +49 (0)40 30 60 59-49E-mail:       info@tag-ag.comwww:          www.tag-ag.comISIN:         DE0008303504WKN:          830350Indices:      SDAXListed:       Amtlicher Markt in Frankfurt (Prime Standard), München;              Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart End of News                                     DGAP News-Service ---------------------------------------------------------------------------