• Adoption of International Financial Reporting Standards (IFRSs)
• Revenue: Euro 61.4 million (+6 %), EBIT: Euro 50.7 million (+25 %)
• Consolidated net profit for the period: Euro 27.7 million (+46 %)
• Again Euro 1.92 dividend per share - tax free
• Net asset value per share: Euro 43.96 (+1 %)
• Forecast 2005: increase of revenue and earnings of more than 10 %, Euro 100-150 million projected for acquisitions

Hamburg, 18 April 2005 - At its annual results analysts' and press conference held in Hamburg, Deutsche EuroShop AG today has announced the final results for fiscal year 2004. The Company's consolidated financial statements were prepared for the first time using the International Financial Reporting Standards (IFRSs).

Consolidated revenue up by 6.1%
Consolidated revenue was up by 6.1% from Euro 57.9 million to Euro 61.4 million in financial year 2004. For the first time, the newly opened shopping centers in Pécs, Hungary, and Hamburg, Germany, contributed to revenue.

High other income due to sale
Other operating income was Euro 9.3 million - around Euro 8.3 million up on the previous year's figure. The sale of the shopping center in Udine resulted in a one-time disposal gain of Euro 4.8 million. An income of Euro 2.0 million from unrealised exchange rate gains from the Hungarian subsidiary was recognised (compared to exchange rate losses of Euro 2.2 million in the previous year). Income from the reversal of provisions increased by around Euro 1.0 million to Euro 1.1 million; income from the sale of money market fund shares rose by Euro 0.5 million to Euro 0.8 million.

Expenses up due to new construction projects
Other operating expenses rose by Euro 1.7 million to Euro 19.3 million. Expensed investment costs for shopping centers under construction were up by Euro 5.5 million on the previous year to Euro 7.8 million due in particular to the initial consolidation of properties in Hamburg and Klagenfurt. On the other hand, no unrealised exchange rate losses arose from the consolidation of the Group's Hungarian subsidiary in contrast to the previous year, when this resulted in expenses in the amount of Euro 2.2 million. Maintenance expenses amounted to Euro 0.5 million - down Euro 2.2 million on the previous year's figure.

Net interest expense deteriorates due to investments
Net interest expense dropped by Euro 3.3 million to Euro -25.3 million. There were two main reasons for this. For one, interest income declined substantially by around Euro 2.0 million to Euro 2.6 million due to increased investment activity and the resulting reduction in cash funds. Secondly, interest expenses grew by Euro 1.4 million to Euro 28.0 million due to the initial recognition of interest on debt arising from the Árkád Pécs and Phoenix-Center properties, both of which opened in the year under review.

Income from investments up thanks to Wroclaw
Income from investments developed satisfactorily, increasing by Euro 1.3 million over 2003 to Euro 4.8 million. The main factor here was the initial contribution to earnings by the Polish investee in Wroclaw.

Gains on fair value adjustments: Euro 8.0 million
Gains on fair value adjustments rose year-on-year by Euro 2.5 million from Euro 5.5 million to Euro 8.0 million. This was the result of changes in the fair values of the shopping centers held as investment properties, which are measured in accordance with IAS 40. The expenses of Euro 3.8 million associated with investments in these properties incurred in the year under review are deducted from this amount. At the same time, changes in the value of the investments in Main-Taunus-Zentrum and Galeria Dominikanska in Wroclaw, which must be recognised in accordance with IAS 39, were included in the gains on fair value adjustments. The changes in value resulting from the investments were calculated based on the current market values of the properties.

Consolidated earnings up substantially
In the year under review, earnings before income and taxes (EBIT) increased by 25% from Euro 40.5 million to Euro 50.7 million, while EBT (earnings before taxes) grew by 37% from Euro 27.9 million to Euro 38.2 million. After deducting income tax of Euro 10.8 million (including Euro 8.1 million in deferred income tax), other taxes in the amount of Euro 1.0 million (mainly real property taxes) and minority interest, consolidated net income for the year was up 46% on the previous year (Euro 19.0 million) at Euro 27.7 million.

Earnings per share (74% from operations, 26% from measurement gains)
Earnings per share amounted to Euro 1.78 compared to Euro 1.22 in the previous year. Of this amount, Euro 1.32 per share (74%) is attributable to operations (2003: Euro 0.93) and Euro 0.46 (26%) to gains on fair value adjustments (2003: Euro 0.29).

Dividend proposed: Euro 1.92 per share - tax free
The Executive Board will propose to the Annual General Meeting to be held in Hamburg on 23 June 2005 that a dividend of Euro 1.92 per share be paid for financial year 2004. This distribution is completely tax-free and corresponds to a dividend-yield of 4.9 % (basis: Xetra-closing price of Euro 39.52 on 15 April 2005).

Net asset value
Based on the consolidated financial statements, the Group's net asset value as at 31 December 2004 is Euro 686.8 million (Euro 43.96 per share) compared to Euro 682.5 million (Euro 43.68 per share) in the previous year.

Forecast
Noticeable increase in revenue planned
After Forum Wetzlar was completed and opened successfully in February 2005, thus expanding the revenue-generating portfolio to include another shopping center, the Executive Board expects a continued generation of positive revenue and earnings in 2005. According to plan revenue increase to Euro 68-72 million in 2005.

Forecast EBIT of Euro 53-56 million
The goal is to increase earnings before interest and taxes (EBIT) from Euro 48.6 million to Euro 53-55 million in currency-adjusted terms. By definition, gains and losses on fair value adjustments cannot be planned. Although earnings before taxes (EBT) were lifted in 2004 due to one-time gains on disposals and substantial income from the reversal of provisions, the Executive Board expects currency-adjusted EBT to remain at the previous year's level of Euro 28-30 million in the current financial year. This would correspond to an increase after adjustment for extraordinary effects of Euro 4.9-6.9 million or 20-30%.

Euro 100-150 million acquisition volume
Whilst Deutsche EuroShop has invested Euro 154 million in 2004, investments of Euro 100-150 million are projected for the current year.

Deutsche EuroShop's key data (IFRS)

Euro million	2004	2003	Change
Revenue	61.4	57.9	6 %
Income from investments	4.8	3.5	38 %
Net interest expense	-25.3	-22.0	-15 %
EBITDA	50.7	40.5	25 %
EBIT	50.7	40.5	25 %
EBT	38.2	27.9	37 %
Consolidated net profit for the period	27.0	19.0	46 %
EPS (Euro)	1.78	1.22	46 %
Equity	684.4	695.3	-2 %
Liabilities	612.6	493.6	24 %
Total assets	1,370.2	1,240.5	10 %
Equity ratio (%)	49.9	56.1
Gearing (%)	100	78
Net asset value	686.8	682.5	1 %
Net asset value per share (Euro)	43.96	43.68	1 %
Cash and cash equivalents	150.3	102.0	47 %
Dividend per share (Euro)	1.92	1.92

Webcast of the analysts' and press conference
Deutsche EuroShop will webcast its analysts' and press conference on Monday, April 18, 2005, at 10:00 a.m. CET live on the Internet as well as the English conference call at 3:00 p.m. CET. Both webcasts can be accessed at the Company's website at Investor Relations.