euro adhoc: Arcandor AG / Strategic management decisions / Ad hoc notification in accordance with § 15 of the German Securities Trading Act: Arcandor AG: LOI to sell 49 % interest in real estate join

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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12.12.2007

Essen (Germany) - December 12, 2007. Essen-based Arcandor AG has
signed a letter of intent (LOI) to sell its 49 per cent interest in
the real estate company "Highstreet". It will be acquired by a bidder
consortium of RREEF, the alternatives investment management arm of
Deutsche Asset Management, Milan-based Pirelli Real Estate and
Borletti Group. The total value of the transaction, comprising the
sale of the interest in Highstreet and the termination of the
existing Joint Venture, is expected to amount to EUR 800 million.
Accordingly Arcandor will part from the entire department store real
estate portfolio and in the future will only appear as the tenant of
the operating units. A further essential component of the agreement
is a one-off annual increase in the department store rent of EUR 20
million.

Arcandor has thus managed to successfully negotiate a complex
transaction under attractive conditions, despite an extremely
difficult market environment.

Furthermore, in a letter of intent (LOI), Arcandor and the before
mentioned syndicate have concluded a strategic alliance for the
department stores in the Premium Group through mutual investments.
The consortium of RREEF, Pirelli RE and Borletti Group will hold an
interest of up to 25 per cent in Karstadt´s Premium segment. Karstadt
is to assume an interest of up to 25 per cent in the La Rinascente
(Italy) and Printemps (France) department store chains. One
representative of each partner is to occupy a seat on the supervisory
boards of Karstadt and La Rinascente/ Printemps.

The aim of the alliance is to create a unique European department
store portfolio in the Premium segment and to leverage the high
synergy potential. A further goal is clear market leadership in
Europe´s luxury segment.

The Management Board

end of announcement euro adhoc
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ots Originaltext: Arcandor AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Detlef Neveling

Phone: +49 (0) 201 727-9816

E-Mail: detlef.neveling@arcandor.com

Branche: Retail
ISIN: DE0006275001
WKN: 627500
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / regulated dealing
Börse Hamburg / regulated dealing
Börse Stuttgart / regulated dealing
Börse Düsseldorf / regulated dealing
Börse Hannover / regulated dealing
Börse München / regulated dealing