AIG International Real Estate GmbH&Co. KGaA

euro adhoc: AIG International Real Estate GmbH & Co. KGaA
AIG International Real Estate announces additional dispositions from portfolio, expects record profits for Q3 and full year 2008

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AIG International Real Estate announces additional dispositions from portfolio, expects record profits for Q3 and full year 2008

Frankfurt am Main, October 3, 2008 - AIG  International  Real  Estate announces additional dispositions from portfolio, expects record profits for Q3  and  full year 2008, cash on hand rises, will suspend new investments, and  will  seek  to return cash to investors through dividends or share repurchases over the  medium term.

AIG International Real Estate GmbH & Co. KGaA (the  "Company",  and   along  with its consolidated subsidiaries, the "Group") announced today  the  sale  of  four additional  properties  from  the  Group   portfolio  in  Japan  and  the    final distribution from another investment in Europe that  was  sold  earlier  in  the year.  The four investments sold, with closing dates between  September  26  and September 30, were Chaymachi, Oyamacho, and the two remaining properties in  the Forest Green portfolio.  Proceeds to the Group from these sales are expected  to be  approximately  EUR  8  million gross  of  Japanese  withholding  taxes  and substantially all of these proceeds are expected to be  received  by  the  Group during October.  In addition, the Group received an additional EUR  1.5   million relating to the sale of its Metropole investment in Copenhagen, Denmark.

Following the receipt of the Metropole proceeds, and  initial   proceeds  of  EUR 1.3 million from the Japanese exits, the Group's cash  on  hand  (including  USD 2.9  million  of  restricted  cash)   is  in  excess  of  EUR  26  million,  with approximately  EUR  6   million  in  additional  proceeds    from    the    Japanese investments expected to be received during October.

Without including the exits discussed above (which will be booked in the  fourth quarter), the Group expects to report gross income of more than EUR  21  million for the third quarter alone and more than EUR 34 million  for  the  first  three quarters. Net income for the first three quarters is expected to  be  more  than EUR 20 million, which would represent earnings of more than EUR 4.50 per  share, and would be more than twice the net income recorded by the Group  in   any  full calendar year since the Company's IPO in 2002.  Additional income generation  in the fourth quarter is expected to be strong due to the gains  generated  by  the sales  described  above  and  due   to  further  expected  gains    generated    by distributions from the Group's Marina Boulevard  investment  in  Singapore  and, potentially, from additional exits.

Although the Group will continue  to  make  follow-on  investments   in  existing properties and to pay additional amounts into investment funds  as  these  funds call commitments, the Group has decided to make no additional investments  until further notice.  This measure will allow the Group  to  further  strengthen  its liquidity.   Consistent with its commitments to existing investments  and  funds, the Company will seek to return cash to shareholders over the next six  to  nine months in the form of either a dividend or a repurchase of  outstanding  shares by the Company.  The Company's management will continue  to  monitor  investment cash flows during the fourth quarter and expects to make a further  announcement before the end of the year regarding any expected  dividend  payments  or  share repurchase programs.

Contact: AIG International Real Estate GmbH & Co. KGaA Andrew Fletcher Phone: +49 (0)69 9711 3225 E-Mail:

Share Data:
WKN:            634421
ISIN:          DE0006344211

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                                    free trade: Berliner Wertpapierbörse, Baden-
Württembergische Wertpapierbörse,                  Bayerische Börse, Bremer@@end@@

Wertpapierbörse (BWB)

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ots Originaltext: AIG International Real Estate GmbH&Co. KGaA
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Further inquiry note:
AIG International Real Estate Gmbh & Co. KGaA
Nicole Gauchat
Telefon: +49(0)69 97 11 32 25

Branche: Financial & Business Services
ISIN:      DE0006344211
WKN:        634421
Index:    CDAX, Classic All Share, Prime All Share
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / free trade
              Börse Stuttgart / free trade
              Börse München / free trade

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