DGAP-News: Colonia Real Estate AG: Termination of Business Cooperation with Systaic AG

Colonia Real Estate AG / Strategic Company Decision

23.10.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------

• No impact on CRE´s annual figures 2008 
• Decision about further solar project strategy in the beginning of  2009 

Cologne, October 23rd 2008 – Colonia Real Estate AG (ISIN DE0006338007)
officially announced today that the business cooperation with Systaic AG is
dissolved.  Already in the beginning of October Systaic terminated the
cooperation agreement with CRE; a few days before, the Düsseldorf based
solar company had already announced the cancelation in their September 25th
prospectus.

This master agreement had been signed in March 2008 and included the supply
of solar panels for CRE´s own portfolio as well as for third party clients
up to a volume of 100 million euro until the 30th of June 2009. After a
detailed legal assessment CRE considers the cancellation as invalid but
sees no basis for further successful cooperation with Systaic.

The delay of the installation of solar panels in CRE´s portfolio was mainly
based on the refusal of the lender of senior mortgages to allow first
ranking easements ('erstrangige Dienstbarkeiten') as security for the
financing of solar panels. This refusal was not to be expected, because CRE
received positive feedback prior to the signing of the master agreement by
the lenders.  'For the allowance of usual security we were able to find a
solution in the meantime', says CEO Stephan Rind, 'we have received binding
financing commitments from a German bank with 10 percent equity on the
basis of a second ranking easement ('zweitrangige Dienstbarkeit').'

In 2009 the guaranteed cash flows for solar panels in Germany will be
reduced by law by nine percent. In addition, solar market experts expect
price drops for solar panels in 2009. Therefore, CRE will review its solar
business and recalculate the profitability of its solar projects early 2009
based on the price development of solar panels in the market.

The termination of the master agreement with Systaic has no impact on CRE´s
annual figures 2008.  The potential lost revenues from the solar projects
of six to eight million euro starting in 2009 would reduce the potential
profits after financing cost, taxes, and depreciation of not more than one
million euro annually.


PR and Press Contact:
Thomas Busch
Head of Marketing and Communication

Telefon: +49 (0)221 71 60 71 0
Fax:     +49 (0) 221 71 60 71 99
E-Mail:  t.busch@cre.ag
Website: www.cre.ag

edicto GmbH
Axel Mühlhaus
Tel.: +49 (0) 69 9055055-2
amuehlhaus@edicto.de


DGAP 23.10.2008 
---------------------------------------------------------------------------
Language:     English
Issuer:       Colonia Real Estate AG
              Zeppelinstr. 4 - 8
              50667 Köln
              Deutschland
Phone:        +49 221-716071-0
Fax:          +49 221-716071-99
E-mail:       info@cre.ag
Internet:     www.cre.ag
ISIN:         DE0006338007
WKN:          633800
Indices:      SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
              NAREIT, E&G DIMAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News                                     DGAP News-Service
---------------------------------------------------------------------------