Publication pursuant to Section 37q (2) (1) of the Wertpapierhandelsgesetz (WpHG - German Securities Trading Act)

The German Federal Financial Supervisory Authority (BaFin) determined that the consolidated financial statements of Deutsche EuroShop AG with the reporting date 31 December 2011 are incorrect:

1. The item 'Measurement gain/loss' indicated in the consolidated income statement was EUR8.3 million too low because merger-related expenses connected to the acquisition of the Billstedt-Center Hamburg which should have been recognised in financial year 2010 were erroneously recognised in financial year 2011.

This is a violation of IFRS 3.53, which states that the acquirer must recognise all costs associated with a business combination as an expense during the periods in which they were incurred.

2. In the 2011 consolidated financial statements, cash inflows in the amount of EUR155.2 million are recognised in cash flow from operating activities and cash outflows of the same amount are recognised in cash flow from investment activities, both in connection with the acquisition of the Billstedt-Center Hamburg, yet no cash inflows or outflows in this amount actually took place during the period.

This is a violation of IAS 7.10, which specifies that the statement of cash flows must only include actual cash flows from the reporting period.