euro adhoc: ECO Business-Immobilien AG / Financial Figures/Balance Sheet / ECO Business-Immobilien AG: significant portfolio expansion and strong earnings performance in 2007

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28.03.2008

ECO Business-Immobilien AG: significant portfolio expansion and
strong earnings performance in 2007

Vienna, 28 March 2008 - Vienna Prime Market-listed ECO
Business-Immobilien AG successfully pursued its policy of selective
expansion in 2007. Thanks to a series of acquisitions during the
year, total real estate assets rose to EUR 1.2 billion. Organic
growth combined with active portfolio management resulted in higher
revenues and an increase in property values. Intensified trading
activities were also reflected in a sharp rise in profits on
disposals. Operating profit (EBIT) compared with 2006 was up by 59%,
to EUR 60.8 million.

All revenue and earnings measures at ECO increased sharply in 2007.
Revenues rose 25% year-on-year to EUR 48.6 million, as a result of
organic growth, new rentals from the existing portfolio and selective
acquisitions. Trading activities were also stepped up, generating
profits on disposals of EUR 16.5 million, a rise of 68% on the
previous year. In 2007 ECO sold over 30 properties, with a total
value of EUR 69 million. With a margin (sales price to book value) of
around 28% and a ratio of profits on disposal to book values of 24%,
sales proceeds were also well above the experts´ recent estimates of
IFRS carrying values. Trading activities now represent a significant
contribution to total earnings, and increase the extent to which the
Company is self-financing, which will allow the Company to take
advantage of further attractive acquisition opportunities.

The adjustment of real estate asset values to reflect fair values,
which is required under IFRS accounting, made a significant
contribution to the positive earnings performance of EUR 17.2
million, compared with EUR 6.1 million last year. This appreciation,
representing around 1.5% of the value of investment properties held
as financial investments, was mainly the result of value-adding asset
management measures and increases in market prices for attractive
locations.

Earnings in 2007 also grew satisfactorily. Solid operational
performance resulted in a 59% rise in operating profit (EBIT) to EUR
60.8 million. Profit before tax (EBT) jumped 68% to EUR 41.7 million,
while consolidated net earnings reached a new record level of EUR
32.8 million, up 83% on the previous year. Funds from operations
(FFO), which is a better measure of a company´s operational earnings
potential because it leaves appreciation of assets out of account,
were also at a record high, totalling EUR 24.8 million. Earnings per
share were up by some 12% to EUR 1.11.

Net asset value (NAV) per share rose by 5% during 2007, from EUR
11.79 to EUR 12.40. NAV per share has increased by an annual average
of 6.4% since 2004.

As a result of selective acquisitions and active management of
portfolio properties, the overall value of the ECO portfolio rose
from EUR 697.2 million to EUR 1.2 billion in 2007. This impressive
EUR 535.9 million increase is primarily attributable to the
acquisition of a 60% majority stake in BAWAG-Immobilien at the end of
December 2007. As of the end of 2007, the ECO portfolio consisted of
119 properties and eight development projects, compared with 126
properties and two development projects at the end of the previous
year. The value of the portfolio increased by 77% year on year, while
total usable space amounted to around 668,000 m2 at 31 December 2007.

For 2008, ECO foresees positive trends in its core Austrian and
German property markets, and in the CEE region. In order to further
increase earnings in this market environment, ECO will be focusing on
active real estate management, profitable property trading
activities, and increasingly on development projects. Selective
acquisitions will also be used to expand the portfolio further, while
active property management and innovative sales and letting policies
will add to the attractiveness of the existing portfolio. One major
focus will be on the former BAWAG properties acquired at the end of
2007.

Development projects in collaboration with well established partners
in the core Austrian and German markets and in the CEE will also be a
high priority, allowing ECO to benefit from increased added value and
earnings opportunities. The development projects which began in
Austria, Germany, Hungary, Luxembourg and Ukraine in 2007 will be
continued in 2008, while possible new projects are currently under
review.

These factors will be reflected in the company´s revenue and earnings
figures. ECO is expecting rental income to continue to grow, with
profits on sales rising as a result of intensified disposal
activities. These revenues will make a key contribution to earnings
in future. Increasing rents and profitable disposals should lead to a
jump in ECO´s cash earnings in 2008.

In its financing, ECO´s policy in 2008 will be to continue to employ
a balanced mix of own funds and debt capital. The Company´s solid
equity capital base, its positive cash flows, and its ongoing real
estate trading activities, which make it to a large extent
self-financing, will be a major contribution to implementing its
future plans.

Key financial indicators in EUR ´000 (in accordance with IFRS)

01-12/2007 01-12/2006
Revenues 48,589 38,803
of which rental income 39,959 32,129
Profits on disposal of non-current assets 16,508 9,819
Changes in fair value of investment property 17,146 6,068
Earnings before interest and tax (EBIT) 60,801 38,280
Earnings before tax (EBT) 41,654 24,739
Consolidated net profit (after minority interests) 32,772 17,900

Earnings per share (EUR) 1.11 0.99
Average number of shares 29,550,000 17,997,115

Cash flow from operating activities 1,673 1,532
Funds from operations (FFO)* 24,723 16,957
NAV per share (EUR) 12.40 11.79
* Earnings before tax + depreciation +/- changes in fair value - tax payable

Property Data

31/12/2007 31/12/2006
Number of properties 127 128
of which hold portfolio 73 55
of which trading portfolio 46 71
of which development projects 8 2
Total usable space in m2* 668,000 471,900
of which trading portfolio 42,800 57,400
of which development portfolio 53,100 8,500
Garage spaces (number) 3,380 2,340
of which trading portfolio 280 290
of which development portfolio 230 0
Total real estate assets (EUR ´000) 1,233,083 697,223
of which properties under construction 34,746 3,892
of which trading portfolio 58,319 94,445
* Garage spaces calculated at 20 m2 per space

end of announcement euro adhoc
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ots Originaltext: ECO Business-Immobilien AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

ECO Business-Immobilien AG

Friedrich Scheck, Chairman of the Management Board

Tel +43 1 535 2199

E-mail: scheck@eco-immo.at

Hochegger|Financials

Roland Mayrl

Tel +43 1 504 6987 31

E-mail: r.mayrl@hochegger.com

Branche: Real Estate
ISIN: AT0000617907
WKN: A0D8RY
Index: Prime.market
Börsen: Wiener Börse AG / Regulated free trade


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