Colonia Real Estate AG Achieves Large Increase in Profits in 1st Quarter Of 2006; Forecast Annual Net Profit of at Least EUR 25 Million Confirmed

In the first quarter of 2006, Colonia Real Estate AG
(ISIN DE000633800) was able to achieve substantial increases in all
its financial results. Based on the first-quarter figures, which do
not contain any contributions from the business areas real estate -
asset management and structured investment products, Colonia Real
Estate confirmed the overall annual forecast for 2006 with a profit of
at least EUR 25 million.
Specifically, Colonia Real Estate AG had revenues of EUR 2,830,000
(previous year: EUR 501,000) in the first three months of the year.
The operating result before taxes and interest (EBIT) climbed to EUR
6,880,000 (previous year: EUR 321,000). The net income for the group
was EUR 4,051,000, compared to the previous year's loss of minus EUR
5,000. Already included in the figures are costs for legal advice and
surveyor costs for real estate purchases either completed or under
negotiation.
The record quarter in earnings is largely attributable to the
excellent development of the residential real estate portfolio. The
company was able to buy real estate at prices significantly below the
market value. According to IFRS 40, that led to a positive revaluation
at the end of the quarter of EUR 6,018,000 before tax.
Colonia Real Estate is confident to complete new investments this
year of EUR 500 million, and anticipates strong growth in the real
estate asset management area.
The full quarterly report will be available in the course of today
at www.cre.ag.

Information and Explanation of the Issuer to this News:

Colonia Real Estate AG is a leading German real estate company
with a focus on the acquisition and asset management of undervalued or
distressed real estate. Its opportunity-based investment activity is
geared to high-yield real estate portfolios in Germany.

This press release contains certain statements on future
developments that are based on current assumptions and forecasts by
the management of Colonia Real Estate AG. Various known and unknown
risks, uncertainties and other factors can mean that the actual
results, financial situation, development or performance of the
company may deviate significantly from the estimates given here. The
company is in no way obliged to continue to make such statements on
future figures or to adjust them to future events or developments.
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For further information, contact:

Colonia Real Estate AG, Stephan Rind, Hohenstaufenring 48 - 54,
50674 Koln.
Tel.:+49 221/ 716071-0 email: ir@cre.ag

edicto GmbH Axel Muhlhaus/ Sonke Knop, Im Grundchen 18a,
61389 Schmitten
Tel.:+49 6084/ 94859-0 email: amuehlhaus@edicto.de

Language: English
Issuer: Colonia Real Estate AG
Hohenstaufenring 48-54
50674 Koln Deutschland
Phone: 0221-716071-0
Fax: 0221-716071-99
email: info@cre.ag
WWW: www.cre.ag
ISIN: DE0006338007
WKN: 633800
indices: SDAX
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime
Standard), Dusseldorf; Freiverkehr in Hamburg, Munchen,
Stuttgart
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