As a member of the IMMOFINANZ Executive Board, Mr. Wurzinger has been responsible for asset and investment management as well as the development of commercial real estate in Austria, Western Europe and the USA. The rapid and consistent restructuring of this area of business under Mr. Wurzinger's management permitted extensive sales of real estate and investments at the height of the economic crisis in 2008 and 2009, which generated revenues of approximately EUR 700 million and thereby made a decisive contribution to the survival and successful financial restructuring of the IMMOFINANZ Group.

"My activities on behalf of IMMOFINANZ gave me an opportunity to guide the company during both the development phase and the restructuring phase. As is demonstrated by the outstanding results recorded for the 2009/2010 financial year, the restructuring phase has been successfully completed and the turnaround accomplished. I have known for quite a while that I would not extend my contract, and this is the ideal time for me to seek new challenges outside the IMMOFINANZ Group,“ commented Mr. Wurzinger.

Michael Wurzinger, 39 years old, is a member of the Royal Institution of Chartered Surveyors (RICS) and has worked for the IMMOFINANZ Group for 13 years. He was appointed to the Executive Board in July 2008. The Supervisory Board and the remaining Executive Board members – Eduard Zehetner (Chairman), Daniel Riedl and Manfred Wiltschnigg – have expressed their thanks to Mr. Wurzinger for his long-standing service to IMMOFINANZ and for his contribution to the Group's positive outlook for the future.

The financial year of the IMMOFINANZ Group ending on 30 April 2010 was characterised by an extensive restructuring process that culminated in the merger of IMMOFINANZ AG and IMMOEAST AG and ends with the implementation of the agreement reached with Constantia Packaging B.V. in May 2010. The IMMOFINANZ Group – whose focus is now placed on the core markets of Austria, Germany, Poland, Romania, Russia, Slovakia, Czech Republic and Hungary – followed an extremely negative crisis year in 2008/09 with a successful turnaround and generated solid positive earnings in 2009/10. Earnings indicators improved significantly over the prior year and remain on a sustainable upward trend.

Revenues and EBITDA
Even though revenues fell slightly from EUR 736.2 million in the prior year to EUR 719.2 million for 2009/10, results of operations (EBITDA) rose substantially by approx. 27% from EUR 310.5 million to EUR 394.9 million. The decrease in revenues reflects a year-on-year decline in rental income and lower income from operating costs charged to tenants, which resulted above all from the sale of properties. However, a significant reduction in overheads from EUR 235.5 million to EUR 112.7 million (-52%) supported an improvement in EBITDA. The gross cash flow is four times higher than last business year and rose from EUR 97.0 million to EUR 387.5 million.

Valuation and financial results
Both valuation results and financial results improved considerably in comparison with the previous year. In spite of this development, valuation results remained negative at EUR -213.7 million for 2009/10 (2008/09: EUR -2,381.7 million) although EUR 234.2 million of foreign exchange-adjusted revaluations were recognised during the reporting year. The negative valuation results were caused by EUR -254.4 million of non-cash foreign exchange effects outside the Group’s influence as well as impairment charges of EUR -286.1 million.

Financial results, which amounted to EUR -1,332.2 million in 2008/09, turned positive in the reporting year and totalled EUR 27.1 million.

Quarterly results
Primarily due to lower sales of properties EBITDA for the forth quarter of the business year 2009/10 decreased by EUR 19 million to EUR 89.7 million compared to the previous year. Due to goodwill impairment charges in connection with the investment in the shopping centre Golden Babylon Rostokino, EBIT turned negative (EUR -65.6 Mio.). The net loss for the period amounts to EUR -25.5 million. IMMOFINANZ Group expects to represent clearly positive results for the first quarter of the current business year in September.

55 million treasury shares
On 13 August 2010 the IMMOFINANZ Group announced that it will take over 55 million IMMOFINANZ shares as treasury stock. These shares are currently held by subsidiaries of Constantia Packaging B.V. and, based on the agreement with Constantia Packaging B.V., the proceeds from their sale would have been turned over to the IMMOFINANZ Group. The direct transfer of these shares will be NAV accretive and also facilitate future refinancing.

Outlook
The restructuring of the IMMOFINANZ Group has been largely concluded, and plans for 2010/11 consequently call for a focus on the optimisation of the property portfolio, the completion and selective reactivation of development projects, and the sale of assets that are not part of the core business of the IMMOFINANZ Group.

The capital structure and liquidity of the IMMOFINANZ Group are stable. Since the IMMOFINANZ Group will be confronted with the possible maturity of EUR 866.6 million in convertible bonds during 2012, refinancing options for the 2014 and 2017 convertible bonds are currently under evaluation. This refinancing, which is one of the prerequisites for the planned payment of a dividend for the 2011/12 financial year, should be realised within the next three quarters.

The annual report of the IMMOFINANZ Group for the 2009/10 financial year will be published in the course of the day under www.immofinanz.com.

The financial year of the IMMOFINANZ Group ending on 30 April 2010 was characterised by an extensive restructuring process that culminated in the merger of IMMOFINANZ AG and IMMOEAST AG and ends with the implementation of the agreement reached with Constantia Packaging B.V. in May 2010. The IMMOFINANZ Group – whose focus is now placed on the core markets of Austria, Germany, Poland, Romania, Russia, Slovakia, Czech Republic and Hungary – followed an extremely negative crisis year in 2008/09 with a successful turnaround and generated solid positive earnings in 2009/10. Earnings indicators improved significantly over the prior year and remain on a sustainable upward trend.

Revenues and EBITDA
Even though revenues fell slightly from EUR 736.2 million in the prior year to EUR 719.2 million for 2009/10, results of operations (EBITDA) rose substantially by approx. 27% from EUR 310.5 million to EUR 393.6 million. The decrease in revenues reflects a year-on-year decline in rental income and lower income from operating costs charged to tenants, which resulted above all from the sale of properties. However, a significant reduction in overheads from EUR 235.5 million to EUR 114.0 million (-52%) supported an improvement in EBITDA.

Valuation and financial results
Both valuation results and financial results improved considerably in comparison with the previous year. In spite of this development, valuation results remained negative at EUR -205.9 million for 2009/10 (2008/09: EUR -2,381.7 million) although EUR 234.2 million of foreign exchange-adjusted revaluations were recognised during the reporting year. The negative valuation results were caused by EUR -254.4 million of non-cash foreign exchange effects outside the Group’s influence as well as impairment charges of EUR -278.3 million.

Financial results, which amounted to EUR -1,332.2 million in 2008/09, turned positive in the reporting year and totalled EUR 20.5 million.

Quarterly results
Primarily due to lower sales of properties EBITDA of the forth quarter of the business year 2009/10 decreased by EUR 20.2 million to EUR 88.5 million compared to the previous year. Due to goodwill impairment charges in connection with the investment in the shopping centre Golden Babylon Rostokino, EBIT turned negative (EUR -58.9 Mio.). Based on a deferred tax income of EUR 32.4 million, the net loss for the period amounts to EUR -25.5 million. IMMOFINANZ Group expects to represent clearly positive results for the first quarter of the current business year in September.

Net Asset Value
The Net Asset Value (NAV) per share amounts to EUR 5.04 as of 30 April 2010. Con-sidering the treasury shares, which IMMOFINANZ Group will take over from Constantia Packaging B.V., NAV per share equals EUR 5.19. Taking into account the dilutive ef-fect of the shares underlying the convertible bond 2011, the NAV per share amounts to EUR 4.90.

55 million treasury shares
On 13 August 2010 the IMMOFINANZ Group announced that it will take over 55 million IMMOFINANZ shares as treasury stock. These shares are currently held by subsidiaries of Constantia Packaging B.V. and, based on the agreement with Constantia Packaging B.V., the proceeds from their sale would have been turned over to the IMMOFINANZ Group. The direct transfer of these shares will be NAV accretive and also facilitate future refinancing.

Outlook
The restructuring of the IMMOFINANZ Group has been largely concluded, and plans for 2010/11 consequently call for a focus on the optimisation of the property portfolio, the completion and selective reactivation of development projects, and the sale of as-sets that are not part of the core business of the IMMOFINANZ Group.
 
The capital structure and liquidity of the IMMOFINANZ Group are stable. Since the IMMOFINANZ Group will be confronted with the possible maturity of EUR 866.6 million in convertible bonds during 2012, refinancing options for the 2014 and 2017 convertible bonds are currently under evaluation. This refinancing, which is one of the prerequisites for the planned payment of a dividend for the 2011/12 financial year, should be realised within the next three quarters.

The annual report of the IMMOFINANZ Group for the 2009/10 financial year will be published at the latest on 31 August 2010 under www.immofinanz.com.

This transfer will give the IMMOFINANZ Group additional latitude in the use of these shares which, in turn, will have a positive effect on NAV (Net Asset Value) per share. There is no longer any pressure to sell the shares at the current market price, which is currently trading at a discount of approx. 50% to NAV.

The closing of the agreements with Constantia Packaging B.V. will be completed at the end of August 2010.

Strategic assistance in the Investor Relations area
In the scope of reorganisation measures following the merger of IMMOFINANZ AG and IMMOEAST AG, the Corporate Finance and Investor Relations departments were combined. Clemens Eisinger, working for IMMOFINANZ Group since 2006, will not only continue his work as Head of Corporate Finance, but also assumes responsibility for Investor Relations. With his long history in the company, Eisinger can offer comprehensive knowledge on the restructuring process and a great analytic competence.

Studies in law and international business administration
During his two courses of study in "international business administration" and "law" at the University of Vienna, Eisinger was able to gain initial experience at GE Capital Bank in Vienna. In 2006, he started his career at IMMOFINANZ Group in the area of group accounting and consolidation. In mid-2008, he became the Head of Corporate Finance. In this position, he was responsible for essential projects in the scope of the extensive restructuring of IMMOFINANZ Group. In his extended scope of responsibility, Clemens Eisinger will, together with the experienced team around Margit Hermentin, strive for increased transparency and an overall improvement of the communication with analysts, professional and private investors.

Eisinger, born in the Mistelbach district in Lower Austria, is a tennis enthusiast and language talent (English, Russian, Czech). In addition to his professional career, he also pursues doctoral studies of law at the University of Vienna.

IMMOFINANZ Group board speaker Dr. Eduard Zehetner says on this: "Clemens Eisinger with his training in international business administration and law and his analytic talent is the perfect man for this job. The support of the constantly growing number of Austrian and international banks who cover IMMOFINANZ Group requires additional, particularly analytic competence in order to close the gap between the current share price and the NAV per share."

“Thus one central point of argumentation on the part of the investor claims concerning IMMOEAST as well as IMMOFINANZ shares has been deprived of any basis”, says attorney Dr. Andreas Zahradnik of the Vienna law firm DORDA BRUGGER JORDIS, which represents IMMOFINANZ Group. This professional opinion is also relevant for any other pending proceedings which IMMOFINANZ and IMMOEAST investors have attempted. The opinion indicates share price performance in conformity with the market for the period in question.

IMMOFINANZ Group has sold the logistics property “Tomilino” to SBERBANK, the largest Russian bank, for USD 39 million. Tomilino is located in close proximity to one of the most important arterial roads, the Moscow Ring Road (MKAD) in the southeast of Moscow. The property was completed in September 2008 and has total space of 53,000 sqm. The parties agreed to keep any further details of the contract confidential. As a whole, the investment at Tomilino has generated a considerable profit for the IMMOFINANZ Group.

The Tomilino sale thus represents another chapter in the already very successful history of IMMOFINANZ investments in the Russian capital. Just a few months ago the shopping centre Golden Babylon Rostokino, with 170,000 sqm of lettable space one of the largest shopping centres in Europe, was completed and opened, while for considerable time the portfolio’s three long-time shopping centres, Golden Babylon I and II and 5th Avenue, have been virtually let in full on a continuous basis.

Numerous new leases and lease extensions in the first quarter of 2010/11
Currently an improvement in the rental situation can be observed, which is mainly attributed to the slight easing of the economic situation in IMMOFINANZ Group’s core markets – particularly in the German-speaking regions. A large number of new leases and lease extensions were agreed in the improved environment in the first quarter of the current business year. During this period new leases and lease extensions were concluded for 110,000 sqm.

Therefore, IMMOFINANZ CEO Eduard Zehetner is positive about the first quarter of the current business year: “It pays off for us to consistently focus on first-rate locations and top properties. They have suffered less from the crisis than the overall market and are also profiting from the recovery of the markets faster than properties of poorer quality or in weaker locations”.