euro adhoc: AIG International Real Estate GmbH & Co. KGaA / other / AIG International Real Estate announces additional dispositions from portfolio, expects record profits for Q3 and full year 2008

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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03.10.2008

PRESS RELEASE

AIG International Real Estate announces additional dispositions from
portfolio, expects record profits for Q3 and full year 2008

Frankfurt am Main, October 3, 2008 - AIG International Real Estate
announces additional dispositions from portfolio, expects record
profits for Q3 and full year 2008, cash on hand rises, will suspend
new investments, and will seek to return cash to investors through
dividends or share repurchases over the medium term.

AIG International Real Estate GmbH & Co. KGaA (the "Company", and
along with its consolidated subsidiaries, the "Group") announced
today the sale of four additional properties from the Group
portfolio in Japan and the final distribution from another
investment in Europe that was sold earlier in the year. The
four investments sold, with closing dates between September 26 and
September 30, were Chaymachi, Oyamacho, and the two remaining
properties in the Forest Green portfolio. Proceeds to the Group
from these sales are expected to be approximately EUR 8 million
gross of Japanese withholding taxes and substantially all of
these proceeds are expected to be received by the Group during
October. In addition, the Group received an additional EUR 1.5
million relating to the sale of its Metropole investment in
Copenhagen, Denmark.

Following the receipt of the Metropole proceeds, and initial
proceeds of EUR 1.3 million from the Japanese exits, the Group's
cash on hand (including USD 2.9 million of restricted cash)
is in excess of EUR 26 million, with approximately EUR 6
million in additional proceeds from the Japanese investments
expected to be received during October.

Without including the exits discussed above (which will be booked in
the fourth quarter), the Group expects to report gross income of
more than EUR 21 million for the third quarter alone and more than
EUR 34 million for the first three quarters. Net income for the
first three quarters is expected to be more than EUR 20 million,
which would represent earnings of more than EUR 4.50 per share, and
would be more than twice the net income recorded by the Group in
any full calendar year since the Company's IPO in 2002. Additional
income generation in the fourth quarter is expected to be strong due
to the gains generated by the sales described above and due
to further expected gains generated by distributions from the
Group's Marina Boulevard investment in Singapore and,
potentially, from additional exits.

Although the Group will continue to make follow-on investments
in existing properties and to pay additional amounts into investment
funds as these funds call commitments, the Group has decided to
make no additional investments until further notice. This measure
will allow the Group to further strengthen its liquidity.
Consistent with its commitments to existing investments and funds,
the Company will seek to return cash to shareholders over the next
six to nine months in the form of either a dividend or a repurchase
of outstanding shares by the Company. The Company's management
will continue to monitor investment cash flows during the fourth
quarter and expects to make a further announcement before the end of
the year regarding any expected dividend payments or share
repurchase programs.

Contact:
AIG International Real Estate GmbH & Co. KGaA
Andrew Fletcher
Phone: +49 (0)69 9711 3225
E-Mail: andrew.fletcher@aig-ire.de

Share Data:
WKN: 634421
ISIN: DE0006344211

Stockmarkets: official dealing/prime standard: Frankfurter Wertpapierbörse
free trade: Berliner Wertpapierbörse, Baden-
Württembergische Wertpapierbörse, Bayerische Börse, Bremer

Wertpapierbörse (BWB)

end of announcement euro adhoc
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ots Originaltext: AIG International Real Estate GmbH & Co.
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

AIG International Real Estate Gmbh & Co. KGaA

Nicole Gauchat

Telefon: +49(0)69 97 11 32 25

E-Mail: nicole.gauchat@aig-ire.de

Branche: Financial & Business Services
ISIN: DE0006344211
WKN: 634421
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse München / free trade