DIC Asset AG: Letter to shareholders

DIC Asset AG / Miscellaneous

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* Group profit of EUR 25 million expected for financial year 2008 
* Property valuation with reductions of approximately 8.5 percent
* Improved cash flow through exploitation of current interest rate trends,
with average interest costs reduced to approximately 5 percent
* Financing contract signed for the Opera Offices project in Hamburg

Frankfurt, 24 February 2009

Dear Sir or Madam, 

In the extremely difficult economic environment, DIC Asset AG is holding
its own thanks to its focused business model. The Management Board of DIC
Asset AG has just concluded important financing agreements with partner
banks, which, in the interests of our shareholders, underline the stability
of our company. Even after the recent property valuations, with
corresponding adjustments, DIC Asset's financing and asset structure
remains stable. We should like to take this opportunity to keep you
informed of the current results and strategic measures.

Based on the provisional figures for the 2008 annual financial statements,
we are expecting a result of approximately EUR 25 million. This means that,
thanks to a stable leasing business and successful sales during the fourth
quarter, we fulfilled our expectations. On 10 March 2009, we will publish
and explain in depth the results for the financial year 2008 along with
further details.

For the annual revaluation of our property portfolio, which took place at
the end of December 2008, market values fell by approximately 8.5 percent
compared with 31.12.2007 on the basis of provisional results. Given the
adverse environment, the valuations of DIC Asset AG's property portfolio
therefore remain sustainable. We can also confirm that we are meeting the
agreed parameters for those portfolios for which valuation-based financial
covenants are agreed.

We were able to reduce the interest rate of the EUR 350 million financing
of our Odin portfolio by 50 basis points by restructuring the interest
hedging arrangements and, at the same time, were able to extend the fixed
interest period to seven years. In this way, DIC Asset AG is reducing its
annual interest payments from this portfolio by approximately EUR 1.6
million. DIC Asset AG acquired the Odin portfolio with 28 properties and
over 260,000 sqm floor space in 2007. DIC Asset AG was supported by its
long-standing financing partners Berlin Hyp/Landesbank Berlin and LBBW in
implementing the restructuring of the interest hedging.

The average interest on all DIC Asset AG loans, which amount to around EUR
1.65 billion, is now approximately 5.0 percent (previously: 5.3 percent).
We have therefore managed to exploit the current positive trends on the
interest rate market and to secure this basis for the long term, with the
attendant positive effects on current cash flow. We have also managed to
extend the interest hedge on the financing of another portfolio acquired at
the end of 2005 by a volume of approximately EUR 63 million, so that the
interest rate on 91 percent of DIC Asset AG's lending portfolio is now
hedged on a long-term basis. In addition, only a very small proportion
(seven percent) of all our financing will need to be extended or repaid
over the next three years, with only one percent falling due for extension
or repayment in 2009.

At the same time, within the framework of one of our opportunistic
co-investments, we signed a project financing contract with Hamburger
Sparkasse which will cover our financing requirement of EUR 35 million for
the Hamburg 'Opera Offices' project in the long term and on attractive
terms. Opera Offices is a project with around 15,000 sqm commercial space
in the centre of Hamburg opposite the Hamburg State Opera. DIC acquired the
building from the city of Hamburg at the end of 2006. The redevelopment
work and new construction should begin at the end of 2009.

These decisions show that it is possible, even in the current financing
environment, to reach suitable agreements with partner banks of long
standing provided the basic conditions are right.

Yours faithfully

Ulrich Höller Markus Koch Dr. Jürgen Schäfer

(Members of the Management Board of DIC Asset AG)
24.02.2009  Financial News transmitted by DGAP
Language:     English
Issuer:       DIC Asset AG
              Eschersheimer Landstr. 223
              60320 Frankfurt
Phone:        +49 69 9454858-0
Fax:          +49 69 9454858-99
E-mail:       info@dic-asset.de
Internet:     www.dic-asset.de
ISIN:         DE0005098404
WKN:          509840
Indices:      S-DAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Hannover, Stuttgart, München, Hamburg, Düsseldorf
End of News                                     DGAP News-Service