TAG Tegernsee Immobilien- und Beteiligungs-AG:

Report on the first nine months of 2007 TAG with continued growth in the third quarter - Sharp rise

TAG Tegernsee Immobilien- und Beteiligungs-AG:

TAG Tegernsee Immobilien u. Beteiligungs AG / Quarter Results

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Report on the first nine months of 2007

TAG with continued growth in the third quarter

- Sharp rise in rental and management income
- Fourfold increase in consolidated profit
- Guidance for 2007 confirmed

(Hamburg, 15 November 2007). TAG Tegernsee Immobilien- und
Beteiligungs-Aktiengesellschaft continued on its successful business
trajectory in the third quarter, with revenues in the first nine months of
2007 rising from EUR 57.6 million to EUR 58.3 million. Consolidated profit
increased fourfold from EUR 1.7 million in 2006 to EUR 7.0 million in 2007.
The encouraging performance was underpinned by the rise in rental and
management income as well as extensions to the real estate portfolio.

Rental and management income climbed by 91 percent year on year from EUR
23.8 million to EUR 45.5 million. The strong growth was due to extensions
to service business as well as the steady increase in rental income.

In the period under review, TAG particularly concentrated on project and
portfolio development at all locations. In connection with the buy, build
and hold strategy, this aims at unlocking long-term value in portfolio
properties. The implementation of this strategy yielded fair value gains of
EUR 23.2 million, up from EUR 9.2 million in the previous year.

The volume of investment properties tripled in value from EUR 172.1 million
at the end of 2006 to EUR 532.5 million as of 30 September 2007. At the
same time, total assets widened from EUR 693.3 million to a current figure
of EUR 799.8 million.

Earnings before taxes (EBT) tripled in the first nine months of the year,
rising from EUR 5.2 million to EUR 15.8 million. TAG’s Management Board
confirms its forecast of full-year EBT of EUR 31 million for 2007. In this
connection, it assumes that the subprime crisis and the resultant more
restrictive lending practices on the part of German banks will not have any
impact on its current business activities and ongoing negotiations.

Bau-Verein zu Hamburg AG, the TAG subsidiary specialising in residential
real estate in German metropolitan regions, also performed encouragingly,
reporting consolidated profit of EUR 4.7 million on a 16 percent increase
in revenues to EUR 42.4 million. Further acquisitions of residential real
estate are currently in the pipeline.

The pooling of service activities under the roof of TAG Asset Management
GmbH was also successful, with management income surging from EUR 0.8
million in 2006 to EUR 5.5 million in the period under review.

With the establishment of TAG Gewerbeimmobilien-Aktiengesellschaft and its
registration as a pre-REIT, the conditions for the placement of a REIT have
been fulfilled. The portfolio of office real estate is generating stable
cash flows from leases of different durations.
'Our preparations for the placement of the TAG commercial property REIT are
proceeding according to schedule. As soon as conditions in the stock market
permit a fair valuation, we plan to float the company as a REIT,' says CEO
Andreas Ibel.

Press inquiries:

TAG Tegernsee Immobilien- und
Beteiligungs- Aktiengesellschaft

Head of Investor & Public Relations 
Kirsten Schleicher
Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388
15.11.2007  Financial News transmitted by DGAP
Language:     English
Issuer:       TAG Tegernsee Immobilien u. Beteiligungs AG
              Steckelhörn 9
              20457 Hamburg
Phone:        +49 (0)40 30 60 59-40
Fax:          +49 (0)40 30 60 59-49
ISIN:         DE0008303504
WKN:          830350
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
End of News                                     DGAP News-Service