Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.

05.12.2006

Frankfurt am Main, December 5, 2006 - Today, the general partner
("persönlich haftende Gesellschafterin") of AIG International Real
Estate GmbH & Co. KGaA has resolved with consent of the supervisory
board ("Aufsichtsrat") to increase the company's share capital by
222,184 Euro from 3,918,396 Euro to a total of 4,140,580 Euro. The
shareholders' subscription rights were excluded according to section
186 para. 3 sentence 4 of the German Stock Companies Act
("Aktiengesetz"). The share capital is increased in return for cash
contributions and by partly exercising the authorized capital
according to section 4 para. 6 of the Articles of Association of AIG
International Real Estate GmbH & Co. KGaA of an aggregated amount of
currently 1,959,198 Euro.

The 222,184 new, bearer shares will be subscribed by a limited number
of investors at a price of 40.50 Euro per share. The proceeds from
this offering to the company will amount to 8,998,452 Euro.

end of announcement                               euro adhoc 05.12.2006 16:41:33

Further inquiry note:

AIG International Real Estate GmbH & Co. KGaA
Andrew Fletcher
Telefon: +49(0)69 97 11 32 25
E-Mail: andrew.fletcher@aig-ire.de

Branche: Financial & Business Services
ISIN: DE0006344211
WKN: 634421
Index: CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Bayerische Börse / free trade