euro adhoc: AIG International Real Estate GmbH & Co. KGaA / other / Net Asset Value as of December 31, 2006

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Net Asset Value Update

19.02.2007

Frankfurt, February 19, 2007

Dear Ladies and Gentlemen:

The preliminary unaudited net asset value ("NAV") of AIG
International Real Estate GmbH & Co. KGaA (the "Company") and
its consolidated subsidiaries (together the "Group") as of December
31, 2006 was EUR 42.64 per share, an increase of EUR 1.53 or
3.7% from the November 30 NAV of EUR 41.11 per share. On an
unaudited basis, NAV per share increased EUR 4.01 or 10.4% from
the audited NAV per share of EUR 38.63 as of December 31, 2005.

Please note that we are still in the process of completing year-end
valuations and that we have not yet begun the audit review process.
Therefore, the year- end audited NAV to be published in our annual
report may differ from the NAV communicated in this flyer.

The increase in NAV during December was primarily due to the
increased valuations for the Group's four largest investments
in Japan (Shinanen Canalside, Forest Green, Oyamacho and
Chayamachi) based on valuations conducted by independent appraisers.
The combined valuation increase for these four investments was
about EUR 6.5 million, which is net of the negative effect on
valuation caused by the sharp weakening of the Japanese yen during
the month.

NAV growth also came from the increased valuation for the Group's
investment in Metropole, the retail redevelopment in Copenhagen,
Denmark. As is generally true with development projects, the
Group held this development at cost during the development phase.
Now that the redevelopment is substantially complete and leased
up, there is strong interest in the project from potential
purchasers. Based on the estimated potential sales value of
Metropole, the Company increased the valuation of its investment by
EUR 1.5 million.

During December, the Company effected a small capital increase
of EUR 9 million, issuing 222,184 new shares at a price of EUR
40.50 per share (at a premium to the then-prevailing market
price). These new shares were registered and accepted for trading
on December 29. As of year end, the Company had 4,140,580
shares outstanding and a market capitalization of over EUR
166 million.

The Group was extremely active on the investment front during
December, with over EUR 30 million in new investments. Of this
amount, EUR 28 million was invested in the Tasman Portfolio,
which consists of 99 office properties located throughout the
Netherlands. The Group invested EUR 26 million directly in Tasman
for a 32.5% interest and an additional EUR 2 million
indirectly through the AIG European Real Estate Fund. The Group
also invested EUR 1 million through the European fund in the
Airport Centre, an office building located at the Luxembourg
airport. Finally, the Group invested an additional JPY 122
million (TEUR 800) in its Japanese property portfolio held through
AIG Japan Fund II.

On the distribution side, the Group received a USD 1.2 million (TEUR
900) from its Terrabrook investment. During the fourth quarter,
the Group received a total of EUR 1.4 million from Terrabrook,
representing nearly 25% of the September 30 valuation for
Terrabrook.

The Group ended the year with EUR 250 million in assets, an
increase of 25% during the year. A portion of the Group's new
investments were financed by EUR 15 million in short-term financing
provided by Landesbank Baden-Württemburg (EUR 10 million) and AIG
Private Bank Ltd. (EUR 5 million). The Group is currently in
the process of finalizing a refinancing of the mortgage on the APP
industrial park in Slovakia and expects to receive an additional EUR
16 million in long-term financing from this source in the coming
weeks. It is anticipated that the short-term financing from LBBW
and AIG Private Bank will be repaid during the first half of
2007.

end of announcement euro adhoc 19.02.2007 15:10:44
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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
Conradin Schneider
Telefon: +49(0)69 97 11 32 25
E-Mail: conradin.schneider@aig-ire.de

Branche: Financial & Business Services
ISIN: DE0006344211
WKN: 634421
Index: CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Bayerische Börse / free trade