InCity Immobilien AG expands its business focus to include retail property

- Expansion of REIS segment with additional retail properties

- Capital commitment of 10 million euro from investors

- Significant earnings lift expected from 2009

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companies

Cologne (euro adhoc) - 17 October 2008 - InCity Immobilien AG, a
group of companies specialised in the planning and realisation of
high-quality properties in inner city locations, is expanding its
business activities. In addition to the existing residential
properties the company will increase the development of retail
properties in high street locations. Using additional external equity
InCity anticipates a further increase of its recently established
REIS "Real Estate Investment Services" segment.

InCity has received equity commitments of up to 10 million euro from
institutional and private investors. After successfully initialising
projects in Cologne and Celle InCity gained funding commitments from
Nürnberger Versicherungsgruppe, the asset management company BN &
Partner and private investors. In combination with additional debt
finance, InCity plans to use these funds to purchase earmarked retail
objects in inner city locations throughout Germany with a total
target volume of 40 million euro. The pipeline is already well
filled with a project volume totalling 60 million euro. The
management expects these projects to make a significant contribution
to Group earnings as from 2009.

"By expanding our business activities to the retail sector, we take
our existing know-how and network one step further. With the
resulting synergies and the external equity we accelerate the value
of our group of companies without diluting the EPS", explains InCity
Board Member André Peto. "Demand for retail objects at top locations
remains very high despite significant declines in other commercial
areas."

About InCity Immobilien AG

InCity Immobilien AG specialises in the planning and realisation of
high-quality property in inner city locations. The company develops
and markets both residential and retail properties using its inhouse
expertise to minimise project running time and to deliver high value
added in the process. InCity pools the experience accumulated through
about 250 high-quality heritage building redevelopment and new
building projects for discerning self-users and investors. The
company creates exclusive, high-value space tailored to customers´
needs in top locations of German metropolitan areas. InCity
underlines its corporate responsibility towards society and the
environment through participation in the UN Global Compact, the
international initiative of the United Nations for the promotion of
social and environmental principles. Further information:
www.incity.ag

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

Further inquiry note:

InCity Immobilien AG

André Peto

Phone: +49 (0) 221 95 27 57 55

a.peto@incity.ag

Investor Relations

Dariusch Manssuri

Phone: +49 (0) 221 91 40 970

dariusch.manssuri@ir-on.com

Branche: Real Estate
ISIN: DE000A0HNF96
WKN: A0HNF9
Börsen: Börse Frankfurt / free trade/entry standard
Börse Berlin / free trade