euro adhoc: KarstadtQuelle AG / other / KarstadtQuelle AG: KarstadtQuelle announces EUR800 million offer for its 49% stake in real estate company Highstreet

--------------------------------------------------------------------------------
Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
--------------------------------------------------------------------------------

22.12.2006

Ad hoc notification in accordance with § 15 of the German Securities
Trading Act

KarstadtQuelle AG: KarstadtQuelle announces EUR800 million offer for
its 49% stake in real estate company Highstreet

Essen, December 22, 2006. The KarstadtQuelle Group has received an
offer in the amount of EUR800 million for its 49% stake in the real
estate company Highstreet. Highstreet is a joint venture of the real
estate investment fund Whitehall (51% stake) and KarstadtQuelle AG
(49% stake). The key assets of the real estate company are Karstadt’s
department stores. This offer is attributable in particular to the
significant improvement in the market position and credit rating of
the main tenant, Karstadt, compared with the situation when the real
estate transaction was concluded on March 27, 2006. Accordingly, the
offer takes into account Karstadt’s potential to accept an increase
in rents in future. The bidder has requested not to be named until
the examination of the offer has been completed. If a corresponding
agreement is signed, KarstadtQuelle intends to use the incoming funds
in the amount of EUR800 million to acquire Lufthansa’s 50% stake in
Thomas Cook.

end of announcement euro adhoc 22.12.2006 17:33:00
--------------------------------------------------------------------------------

ots Originaltext: KarstadtQuelle AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Karstadt Quelle AG
Investor Relations
Tel. +49(0)201 727-9816
Fax: +49(0)201 727-9854
E-Mail: investors@karstadtquelle.com

Branche: Retail
ISIN: DE0006275001
WKN: 627500
Index: CDAX, Classic All Share, HDAX, MDAX, Midcap Market Index,
Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / official dealing
Hamburger Wertpapierbörse / official dealing
Baden-Württembergische Wertpapierbörse / official dealing
Börse Düsseldorf / official dealing
Niedersächsische Börse zu Hannover / official dealing
Bayerische Börse / official dealing