LI>Operating result of the Group up 95%

Consolidated result depressed by roof refurbishment in Italy

Forecast for 2003 – operating result of Euro 27.8 million

Hamburg, November 24, 2003 – In the first nine months of the year, Deutsche Euroshop AG (ISIN DE0007480204) generated an operating result of Euro 20.9 million, up from Euro 18.6 million in the comparable prior-year period (+12%). Income from investments contributed Euro 19.6 million (Euro 16.9 million), an increase of 16%.

Deutsche Euro Shop AG net profit for the period up 12%
As a result of lower interest rates and the net cash used in acquisitions, interest income fell to Euro 2.8 million in the period under review, down Euro 0.8 million on the prior-year period. After deduction of taxes on income (transfer to the provision for deferred taxes on income) and other taxes, the net profit for the period amounted to Euro 15.3 million as against Euro 13.7 million in 2002, an increase of around 12%.

Positive consolidated sales trend
The final completion of the refurbishment works at Rhein-Neckar-Zentrum boosted sales by the Group. Thus, sales rose by 6% from Euro 34.5 million to Euro 36.7 million. Income from investments rose from Euro 3.2 million to Euro 5.1 million (+59%). This is mainly due to the fact that the shopping centres in Dresden and Kassel, which opened in 2002, contributed to earnings for the entire period for the first time in 2003.

Consolidated net profit for the period at Euro 1.1 million
Other operating expenses declined by just under 18%, from Euro 8.7 million to Euro 7.1 million in the first nine months of 2003, as a result of a slow-down in investment activity. A consolidated net loss of Euro -0.3 million was recorded for the third quarter as a result of a Euro 0.6 million provision for a roof refurbishment at Centro Commerciale Friuli in Udine, which started in September.
Interest income in the first nine months dropped to Euro 4.2 million, down Euro 1.4 million year-on-year. This was primarily due to lower interest rates in 2003.
Overall, the result from ordinary activities almost doubled from Euro 3.9 million to Euro 7.7 million (+95%). After the deduction of taxes and minority interests, the consolidated net profit for the period amounted to Euro 1.1 million (Euro -2.1 million).

Operating result of Deutsche Euroshop AG in line with expectations
Deutsche EuroShop AG expects an increase of the operating result from Euro 24.8 million to Euro 27.8 million in 2003 – originally planned were Euro 27,6 million – and an unappropriated surplus of Euro 30 million.

Consolidated result depressed by roof refurbishment in Udine
The consolidated result for 2003 will be impacted by the roof refurbishment at the Centro Commerciale Friuli in Udine, the costs of which total approximately Euro 2.5 million. The Company therefore now expects to report a loss of around Euro 0.5 million and not the consolidated net profit of Euro 1.4 million originally forecasted.

Full investment soon
Following the acquisition of Deutsche EuroShop AG’s equity investments in Hamburg and Wetzlar, a further Euro 18 million is still available for another investment in a shopping centre. From today’s perspective, the chances of being fully invested by the end of the year as planned are good.

Deutsche EuroShop – The Shoppingcenter-AG
Deutsche EuroShop AG is the sole German publicly listed real estate company following an investment strategy focused exclusively on shoppingcenters. The SDAX-company currently holds participations in 13 European shoppingcenters in Germany, France, Italy and Hungary.

This interim report of Deutsche EuroShop AG is available in German and English and can be downloaded as PDF files on the Internet at www.deutsche-euroshop.com