TAG Tegernsee Immobilien- und Beteiligungs-AG: TAG reporting increased revenues and improved profitability

TAG Tegernsee Immobilien u. Beteiligungs AG / Half Year ResultsRelease of a Corporate News, transmitted by DGAP - a company of EquityStoryAG.The issuer / publisher is solely responsible for the content of this announcement.----------------------------------------------------------------------- 49 percent increase in revenues to EUR 51.1 million- Earnings before taxes (EBT) of EUR 6.7 million- Portfolio widened to EUR 843 million - Muted full-year outlook for 2008(Hamburg, 21 August 2008). TAG Tegernsee Immobilien- undBeteiligungs-Aktiengesellschaft (or TAG for short) achieved further growthin operating business in the second quarter of 2008. With the systematicextensions made to its real estate portfolio and higher rental income, itachieved a substantial increase in revenues over the year-ago period intandem with improved profitability. The shareholders passed a resolution atthis year’s annual general meeting to adopt a new name in the future - TAGImmobilien AG.TAG’s revenues grew by an encouraging 49 percent in the first half of theyear, rising to EUR 51.1 million, up from EUR 34.3 million in the previousyear. This significant increase was primarily caused by sales proceeds andTAG’s successful rental business. Rental income climbed by 35 percent toEUR 21.8 million (previous year: EUR 16.1 million).At EUR 6.7 million, earnings before taxes (EBT) fell short of the previousyear’s figure (EUR 14.3 million), which had been inflated by gains fromfair-value revaluation. Despite the reduced gains from fair-valuerevaluations in the period under review, gross profit remained at a highEUR 31.4 million.TAG’s favourable business performance is also reflected in its totalassets, which widened by just under EUR 23 million compared with the end of2007, rising to EUR 909.3 million. TAG’s successful acquisition activitiesin the first half of 2008 as well as spending on the portfolio and projectdevelopment caused real estate volumes to increase by around 11 percent toa total of EUR 843 million, with the equity ratio remaining at a high 34percent. On a particularly positive note, the loan-to-value (LTV) ratiocontracted from 67 percent to 63 percent in the first half of the yeardespite the investments which had been completed.  LTV is the ratio of loanliabilities to the market value of the real estate.'TAG’s gratifying business performance is unfortunately not reflected inits stock,' says Andreas Ibel, CEO of TAG. 'The crisis afflicting thecapital markets is also a crisis of confidence, which is influencinginvestor behaviour in the stock markets. Listed real estate companies areparticularly bearing the brunt and trading at discounts of up to 70 percenton their net asset value at the moment.'In line with its buy, build and hold strategy, TAG will continue to focuson enhancing the value of its portfolio in the long term as well asattractive acquisitions and new construction projects. Given the sustainedstrong demand for commercial and residential rental properties, rentals -particularly in the residential segment - are expected to rise in thesecond half of 2008. In the second half of 2008, TAG will continue to focuson asset management activities to further boost the return on itsportfolios via higher rentals and cost optimization.Despite the growth in the Company’s operating business, TAG’s ManagementBoard is cautious with respect to its full-year forecast on account of thenegative underlying conditions and currently forecasts earnings beforetaxes (EBT) of EUR 15 - 20 million, i.e. less than in the previous year.Contact:TAG Tegernsee Immobilien- undBeteiligungs-AktiengesellschaftHead of investor and public relations Kirsten SchleicherTel. +49 (0) 40 380 32 300Fax +49 (0) 40 380 32 388pr@tag-ag.com21.08.2008  Financial News transmitted by DGAP---------------------------------------------------------------------- Language:     EnglishIssuer:       TAG Tegernsee Immobilien u. Beteiligungs AG              Steckelhörn 9              20457 Hamburg              DeutschlandPhone:        +49 (0)40 380 32 300Fax:          +49 (0)40 380 32 399E-mail:       info@tag-ag.comInternet:     www.tag-ag.comISIN:         DE0008303504WKN:          830350Indices:      SDAXListed:       Regulierter Markt in Frankfurt (Prime Standard), München;              Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart End of News                                     DGAP News-Service ---------------------------------------------------------------------------