InCity Immobilien AG expands its business focus to include retail property

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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

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

end of announcement euro adhoc
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emitter: InCity Immobilien AG
Gilbachstr. 29 a
D-50672 Köln
phone: +49(0)221 952757-55
FAX: +49(0)221 952757-57
mail: info@incity.ag
WWW: http://www.incity.ag
sector: Real Estate
ISIN: DE000A0HNF96
indexes:
stockmarkets: free trade/entry standard: Börse Frankfurt, free trade: Börse
Berlin
language: English

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