EANS-Adhoc: Sparkassen Immobilien AG / successful first half year

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6-month report

31.08.2010

Ad hoc release Vienna, 31 August 2010

Sparkassen Immobilien AG: successful first half year

Following a successful first quarter of 2010, stock exchange listed
Sparkassen Immobilien AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) has an
equally satisfactory first half year to report.

Differing economic climates The first half year saw gradual
macroeconomic improvements in the Group´s markets, although the
pace of recovery was very varied. While recovery is best advanced
in Germany, Austria, the Czech Republic and Slovakia, and
the performance of these economies on a year-on-year basis is
excellent, Hungary, Romania and Bulgaria have not yet returned to
growth.

Top quality property portfolio As at 30 June 2010, Sparkassen
Immobilien AG´s property portfolio consisted of 251 residential,
office, commercial and hotel properties with a total value of
EUR 1,853.7m (31.12.2009: EUR 1,900.8m). The occupancy rate was a
steady 90%, and the gross rental yield was an excellent 6.8%. Rental
income for the first half of 2010 increased by EUR 3.5m and
amounted to EUR 48.2m (HY1 2009: EUR 44.7m).

Continuing excellent operating performance The general increase in
overnight stays and hotel occupancy rates in the first half year
had a positive effect on income from hotel operations, which rose
to EUR 17.0m (HY1 2009: EUR 16.2m). This was an increase of 5.2%,
while expenses of hotel operations only increased by 3.4%, to
EUR 13.7m.

According to property use type, commercial properties contributed
the largest share of rental income, with 35.5%, followed by
offices with 31.1% and residential properties with 28.4%. In
the period under review the share contributed by hotels was 5%.
The income of the hotels Vienna Marriott and Budapest Marriott
- which are operated under management agreements - is
disclosed as income from hotel operations.

Earnings increase Sparkassen Immobilien AG sold a total of five
residential properties in the first half of 2010, three of them
in Vienna and two in Berlin. All the properties were sold
above their estimated value. The resulting gains on disposal
came to EUR 2.6m (HY1 2009: EUR 0.3m). EBITDA, at EUR 36.8m, was
10% up on the comparable period last year (HY1 2009: EUR 33.5m).
Operating profit (EBIT) rose to EUR 30.1m in the period under
review, which is a significant improvement (HY1 2009: 23.8m).

Higher borrowings meant that net financial expense in the first
half of 2010 changed from EUR 15.0m to EUR 18.5m. Profit before tax
(EBT) compared with the same period last year climbed 73.2% to
EUR 6.6m (HY1 2009: EUR 3.8m). The net profit of EUR 5.0m for the
period was up an impressive 57.5% (HY1 2009: EUR 3.2m).

Positive key performance indicators Operating cash flow improved
slightly to EUR 33.2m (HY1 2009: 33.0m). Funds From Operations
(FFO) in the period increased from EUR 11.3m to EUR 11.4m. Net
Operating Income (NOI) compared with the same period last year
improved by 17% to EUR 38.7m (HY1 2009: EUR 33.0m) due to increased
rental income. EPRA NAV (Net Asset Value measured by EPRA
standards) rose from EUR 8.13 at 31 December 2009 to EUR 8.23 per
share at 30 June 2010.

Quality strategy ensures successful progress of development projects
Sparkassen Immobilien AG´s biggest development projects so far,
the shopping centres Sun Plaza in Bucharest and Serdika Center in
Sofia, were completed on schedule and opened successfully in
February and March. Both sites are almost fully let, and are now
generating regular income streams for the Group.

The Neutor 1010 project, an office and residential development with
11,000 m² of usable space in Vienna´s Inner City, is in the final
stages of completion and will be opened on schedule in the autumn
of 2010. Three quarters of the commercial space has already been
let long-term. The upper floors consist of 34 luxury apartments,
of which 27 have already been sold before completion. In
Bratislava, the Galvaniho 4 office building is in the process
of being completed and is already three-quarters let.

Sparkassen Immobilien AG´s roughly 12-hectare land bank includes six
plots of development land in the EU-capital cities of Central and
South Eastern Europe. In Bratislava there is a site for which
planning permission for offices has been granted. In the centre
of Prague there is a site available for the development of a
150-room hotel. The Group also owns sites in Bulgaria and
Romania with high development potential. An office project is
planned in the centre of Sofia in conjunction with Immorent AG. A
40,000 m² specialist retail park is planned in the south of
Bucharest, and at a prime location within the Grivitei district an
office and hotel complex is projected. All projects are in the
planning and approval stages and will be begun as soon as the
economic climate permits.

Annual General Meeting 2010 The Annual General Meeting 2010 was held
on 21 May 2010. Eight of the ten agenda items were adopted by
a large majority. Only the motion for the conversion of
participating certificates into ordinary shares and another
motion in connection with the conversion failed to achieve the
necessary 75% majority, the motion was approved by 56% of the votes.
Sparkassen Immobilien AG continues to work for a simplification of
the capital structure and towards a resolution of the issue that
will be in the best interest of all its investors.

s IMMO share´s weighting in IATX doubled Several mergers in the
industry meant the amalgamation of a number of Austrian property
stocks, and resulted in a narrowing of the base of the IATX, much
to the benefit of the s IMMO share. Its weighting in the index
doubled to 18.2%.

The performance of the s IMMO share in the first half of 2010 was
affected by overall developments in Europe. The weakness of the EURO
and the debt crisis of several European economies resulted in
sinking share prices. The s IMMO share also fell back slightly:
its market price at 30 June 2010 was EUR 4.78, just under the
EUR 4.95 quoted at 31 March 2010. Compared with the price a
year earlier, however, its performance was more satisfactory - a gain
of 11.5%. In comparison, the ATX, which reflects the performance
of the Austrian stock market as a whole, increased by 8.5%.The
current price of the s IMMO share is EUR 5.15 (closing price
30 August 2010).

Outlook Sparkassen Immobilien AG aims to more than double its
operating cash flow from EUR 49.0m in 2009 to over EUR 100m within
the next two years.

Consolidated income statement for the first half year ended 30 June
2010

EUR m / fair value basis

| |1 - 6/2010 |1 - 6/2009 1 |
|Revenues |79,356 |73,481 |
| Rental income |48,228 |44,681 |
| Revenues from service charges |14,082 |12,590 |
| Revenues from hotel operations |17,046 |16,210 |
|Other operating income |3,056 |7,056 |
|Expenses directly attributable to |-26,906 |-27,205 |
|properties | | |
|Hotel operating expenses |-13,707 |-13,260 |
|Revenues less directly attributable |41,798 |40,072 |
|expenses | | |
|Income from property disposals |57,670 |24,060 |
|Carrying values of property disposals |-55,060 |-23,770 |
|Gains on property disposals |2,610 |290 |
|Management expenses |-7,623 |-6,912 |
|Earnings before interest, tax, depreciation|36,785 |33,450 |
|and amortisation (EBITDA) | | |
|Depreciation and amortisation |-4,970 |-4,728 |
|Gains / losses on property valuation |-1,730 |-4,900 |
|Operating result (EBIT) |30,084 |23,822 |
|Finance costs |-18,526 |-14,976 |
|Participating certificates result |-5,001 |-5,059 |
|Net income before taxes (EBT) |6,558 |3,787 |
|Taxes on income |-1,542 |-603 |
|Net income / loss for the period |5,016 |3,184 |
| of which attributable to shareholders of |6,215 |3,216 |
|parent company | | |
| of which attributable to minority |-1,199 |-32 |
|interests | | |
| | | |
|Earnings per share |0.09 |0.05 |

|Property indicators | |30.06.2010 |
|Completed properties |Units |251 |
|Total usable space |m2 |1,409,201 |
|Rental yield |% |6.8 |
|Occupancy rate |% |90 |
|Land bank |Number of |6 |
| |plots | |

1 Adjusted

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

Further inquiry note:

Investor Relations:

Sylwia Milke

Phone: +43(0)50100-27402

Fax: +43(0)05100-927402

E-mail: sylwia.milke@s-immoag.at

www.sparkassenimmobilienag.at

Corporate Communications:

Bosko Skoko

Phone: +43(0)50100-27522

Fax: +43(0)05100-927522

E-mail: bosko.skoko@s-immoag.at

www.sparkassenimmobilienag.at

Branche: Real Estate
ISIN: AT0000652250
WKN: 065225
Index: ATX Prime, IATX
Börsen: Wien / official market